Watch The Pandemic Bank Flu Spread From Italy To France To Spain: To Big Not To Fail!!!

Reggie Middleton's picture

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JeremyM's picture

Looks like the Spanish need to start bulldozing homes pronto and selling the land at discounted prices.  Firesale anyone?


Common Sense Capitalism

PulauHantu29's picture

I read the local gubberments in Spain are "expropriating" many house developments in Southern Spain and evicting Brits who bought them syaing the developers never actually had the right to the land.

So far, the Brits have lost all thier legal battles as far as I know. Same thing along the west coast of Mexico.

foxenburg's picture

QuietCorday. Old timers wouldn't have any interest. Spanish oldies have a very strong sense of togetherness, all go dancing together at fiestas, meet every night at the hogar de pensionista, have their favourite little bars and shops. These new developments were in the middle of nowhere, typically 5-10 miles outside an existing town.. Since no-one lives there there are no supporting facilities, shops, bars, etc. Then, because there is no money, the elevators don't work, the street lighting, etc. It feeds on itself. I can't think of a worse place to dump an oldie.

btw this is the most accurate take on the Spanish economic situation I have read. I live in Spain, semi retired, and drive a lot...thousands of miles a months just cruising around with my wife. even the tiniest village - population 500- has dozens of brand new apartments for sale. Once you get to a 100 000 pop town the new and unfinished apartments are in the thousands. As for Madrid, one drives for mile after mile through immaculate, well designed ghost cities. There apartments were all designed with young people in mind - but young people have unemployment of well over 40%. More like 75% in Andalucia. A huge percentage of the population were in construction - and then you have the factories making bathroom and kitchens and tiles and lighting factories - and then the people selling and installing them. This has all come to a stop. None of these people will get a job again in construction or supporting industries in their lifetimes. They will have to be retrained in.....what? Many are buggering off to Germany. The Spanish pretend that the housing market has only dropped a few percent but the fact is that NOBODY is buying at any price. The banks can't admit to the truth or they would have to re-do their balance sheets. All the vacation homes on the Costas designed with Brits, germans, Scandinavians in mind have dropped at least 50% in the last 3 years. And still no buyers because the sort of people who might like to buy are now mostly broke and can't raise loans. They have enough on their plates back in their own countries without having spare cash for exotic real estate adventures on the continent. And why would you buy when you can rent an empty 2 bed/2bath new one for 400 euros a week as owners are desperate to have some cash flow. And if you buy and Spain exits the Euro then you house presumably gets revalued in devalued pesetas. Who knows? Why take the risk?

Sudden Debt's picture

Relax, those are just vacation homes!
The drop in spain is actually the cause of lack of black money. Once the economy restores itself in let's say around 2025, their economy will recover to.

So, to the spanish people: you guys just hang in there! Just 14 more years of this shit!

Gloomy's picture

Reggie-I'm curious-got gold?

Steroid's picture


You were great in Netherland. You delivered your message wonderfully.

It is quite sad they needed this wake up call of basic finance in the cradle of European capitalism.

Sometime they sounded like Neanderthals. Did/do they listen? 

Gloomy's picture


  Curious-do you like gold?

Treason Season's picture

Have wondered that myself having never seen him mention it in his posts but I suspect Reg is one of the Tylers so he's probably long the yellow metal.

QuietCorday's picture

Makes you wonder ... all this housing in Southern Europe vacant while young people still have to live with parents. Why don't these developers try and rent out ex-urb properties cheaply to old-timers? A) to make back at least something and B) clear the urban centres and suburbs?

Yes, it is wildly misallocated capital, but what else are they going to do? A lot of these properties will only last, at most, three decades, before they either need serious renovation work or pulling down. The South Med climate is harsh on concrete housing; they don't last long.

By 2017, a lot of this housing will be wrecked, fit for nothing but the bulldozer.


cocoablini's picture

Developers share the blame too. They try and make commuter zones in the middle of farmland. Problem is gas is 10 bucks a gallon, no one can afford Fiat Pandas with the taxes. Unless the city can get a train system in there. oh well. Dumb banks, dumb people and dumb civic planning

The Big Ching-aso's picture


'The pain in Spain falls mainly on the drained.'

acmebrainsurgery's picture


Watch The Pandemic Bank Flu Spread From Italy To France To Spain: To Big Not To Fail!!!"

Reggie, I'm sure you must have meant "Too" Big Not To Fail, ...right? :-)

Treason Season's picture

5 Stars for referencing Bullworth. Great Movie. Not to mention the rest of the post.

cocoablini's picture

Interesting discussion on Dutch Real Estate. Reggie clearly sees the short and long term issues-
The comment on China is really telling. As we deflate, China inflates their product prices to smooth out their previous dumping of product.
The US, which imported inflation of manufacturing to China, now will be paying the piper in higher prices.
We have been living in a low inflation dream as far as consumer products. That, with the crash in commodities and assets, is going to be super bad for China. Plus their ridiculous land bubble

cocoablini's picture

So Reggie, how come these articles do not appear at your blog site. The last article is from Nov 3rd on boombustblog

Reggie Middleton's picture

They appear on my site before they appear anywhere else. This story ran on my site yesterday morning, and much of the content won't even appear on zero hedge due to its nature. You probably have to clear your browser cache and history to see new pages.

cocoablini's picture

Nigel Farage- I am surprised his Range Rover hasn't gone up in smoke yet. He rails against the Trilaterals and Builderburg new oligarchical order daily.

I suspect they either get the euro nanny state run by the Germans(sad, all those millions died for nothing in the 30s and 40s) or
They all make a pile in conventional money shorting and going long their decisions.
Sort of how Nancy Pelosi makes her millions...front running. Neoliberalism is just an awesome spectacle of corruption.

cainhoy's picture

Reggie, you are the best. Critical mass approaches and nothing will stop the explosion. It looks like the Mayan long count calendar was correct after all.

Mr_Wonderful's picture

I´m afraid the Mayans thought that the earth was a flat disk sitting on the back of a gigantic alligator. They most certainly didn´t have the slightest clue about any calendars. How scamsters have been able to sell those ignoramuses as some sort of cosmic geniuses is totally beyond me.

Tao 4 the Show's picture


2012 stuff aside, the Mayans were excellent astronomers and kept complex calendars. New age interpretations are one thing , but history is another. Check out Aveni's book for a readable account that is skeptical of the hype but interesting wrt the history.

apberusdisvet's picture

We don't need no stinking Hitler or Mussolini; we can accomplish more with unelected fascists who control the money supply and are immune from prosecution or transparency.

Sudden Debt's picture

Let's vote about it and see...

eddiebe's picture

I hear the sounds of the drums of war in Europe.

WVO Biker's picture

Just back from a fortnight in Almunecar/Andalusia. Rented "se vende" appartment costs $440,000 or $65,000 less if you circumvent the broker. No chance of selling anywhere near that price. How about $70,000? Nearly 1 in 20 homes for sale, nothing moves there. Took rented Yamaha 125cc motorcycle (PITA) up the mountains and had to pay $25 for one fish. But folks are friendly and the weather is OK, too, Everybody seemed to be very cool considering the economic desaster. They do not need to build more homes for a long time to come. TV full of nice broads talking, talking, talking about sex and society. Road conditions OK thanks EU. Warmer than Germany in winter but not much better. Maybe not the destination for retirement or staying during winter. Wireless internet access OK.

disabledvet's picture

I agree. I think the "heated rhetoric" vis a vis Greece is just for starters. elections in Spain coming right up (outcome not in doubt as the Socialists are carted out the door)...the Socialists are out in Greece Italy it's "the Mafioso." Interestingly he's been replaced by a far left technocrat who will "now run things out of Brussels"(?) That leaves only two: Ms Merkel and President Sarkozy. If there's a "falling out" or some other "chilling event" then the outcome is no longer in doubt: the EU and not just the euro is finished. That's just for STARTERS. Governments throughout the world have already "war-gamed" this so the only people for whom it will come as a surprise is you and me. We're way behind the people need to start picking up the slack around here. LET'S GET MOVING ZH'ERS!