Spain's "Terrible And Inhumane" Situation Prompts End To Evictions

Tyler Durden's picture

With Spanish unemployment at record levels over 26% (and youth unemployment over 50%), even the bailout-avoiding prime minister is now recognizing the "terrible things and inhumane situations" that many real people are dealing with. To wit, a 53-year-old woman died after she threw herself from a window of her apartment when representatives of Spanish bank La Caixa arrived with locksmiths to evict her yesterday morning. The suicide (following another last month in Granada) has prompted Rajoy to temporarily halt evictions of the most vulnerable families as the government devises measures to help people stay in their homes. And yet, we are told again and again by Juncker, Barroso, van Rompuy et. al that the corner has been turned... we suspect not!


Via Bloomberg:

Spanish Prime Minister Mariano Rajoy will temporarily halt evictions of the most vulnerable families as the government devises measures to help people stay in their homes after a woman killed herself in Baracaldo.


The Spanish people are experiencing “terrible things and inhumane situations,” the premier said at an election rally in Lerida, Catalonia last night. The government “will defend the most vulnerable families affected by the evictions and act with seriousness, sensitivity and great humanity,” he said.


Amaya Egana Chopitea, 53, threw herself from the window of her apartment when representatives of Spanish bank La Caixa arrived with locksmiths to evict her yesterday morning, El Mundo reported. Egana and her husband’s mortgage debt of 164,000 euros ($208,640) rose to 213,000 euros because of charges and interest payments, while their home had been auctioned for 190,000 euros, the newspaper said.


Rajoy is searching for a formula that can help families that have fallen behind on mortgage payments without increasing the strain on lenders trying to clean up about 180 billion euros of bad real estate assets, the legacy of a 10-year building boom. Banco Popular Espanol SA (POP) today offered shareholders the chance to buy new stock at a 32 percent discount as it tries to plug a 3.2 billion-euro capital deficit.


Record Unemployment


The banking sector’s problems are already complicating Rajoy’s efforts to narrow Spain’s budget deficit and get the economy moving again. Unemployment reached a record 26 percent in September and the European Commission last week said Rajoy is set to miss his budget goals for the next three years.


The premier yesterday said he wants to agree on a plan with the opposition Socialist Party that will encourage banks to renegotiate loans and find ways for families to stay in their homes, according to the e-mailed text of his remarks.


“It’s a difficult issue but I hope that soon we will be able to give the Spanish people some good news,” he said.


Egana, a former city councilor, worked as a human resources director for the public bus company in the northern region of Vizcaya and her husband, Jose Manuel Asensio, had recently found work after a period of unemployment, El Mundo said. Asensio didn’t know the family was due to be evicted, the newspaper said.


A spokesman for La Caixa, who asked not to be identified in line with company policy, declined to comment on the eviction.


A man in the southern city of Granada killed himself last month as he faced the loss of his home, according to press reports.

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vote_libertarian_party's picture

Now every gvt. will need to print print print or be accused of violating human rights.

AG BCN's picture

Rajoy will quickly find that he has no power, the ECB and the banks will carry on.'s picture

Somebody ought to tell those La Caixa scumbags that it's the bankers who are supposed to throw themselves out of windows.

Mr Lennon Hendrix's picture

I wonder what would happen if thousands of people stormed the castles of the Rotheschildes?

Precious's picture

Moral of the story: It's safer to own a single-story rancher.

geox's picture

...without high windows, you mean?

stocktivity's picture

The poor woman was completely out of hope or options ...I knew some scumbags would make a joke. Clueless, heartless bastards.

GetZeeGold's picture



Clearly she didn't see the benefits of going green.


Turns out the polar bears are doing pretty good......people.....not so much.



Nussi34's picture

The Bundesbank will take over what rightfully beklongs to it and evict the Spanish ex owners!

machinegear's picture

If there is one, it should be: when at your end, take out one banker on the way out.

WTFx10's picture

If the people hung them all, It would be freedom from slavery. "A bugs life" come true.

goldfish1's picture

Good graphic directed at the banksters.

What is

"Terrible And Inhumane" is the relief effort in NJ and NY. WTF...where's the national guard, where's the tent cities with heaters and plenty of food and water and working toilets?

No more news yet people are STILL without power and the basics. Fukk these fukkers.


CrashisOptimistic's picture

You can't print oil and that's what the money has to pay for, when you have none of your own.

debtor of last resort's picture

On the 10 pm news in Holland as we speak. Same case. It does get attention. Next: ponzi for the people.

Non Passaran's picture




Say you want a revolution

We better get on right away

Well you get on your feet

And out on the street


Singing Ponzi to the people

Ponzi to the people

Ponzi to the people

Ponzi to the people, right on


A million Spaniards working for nothing

You better give 'em what they really own

We got to put you down

When we come into town





debtor of last resort's picture

It's a sad thing that there's is a game of multiple ponzi's. It will logically be extended and pretended. Because we only have managers. The leaders are exterminated by the managers, again and again. Narcism rules.

catacl1sm's picture

I miss the days when stock traders would jump from sky scrapers

fiddy pence haff pound's picture

they've got a permanent soft landing, no matter how much they screw up.

why jump out? jump for joy.

can't beat 'em? join 'em

Osmium's picture

Not that many human traders left.  What will they do instead, throw computers out the window?

slackrabbit's picture

Thats because in those days, the investment they partnerships.

Bring Glas-Stegal back and let the jumping contiune!!

Jayda1850's picture

Reuters also has an article on the subject. The best line is : "No one should be without a home for not being able to pay," Alfredo Perez Rubalcaba, leader of the opposition Socialist Party said on Saturday.


Needless to say Mr. Rubalcockgobbiler doesnt suggest who should pay for the homes of Spains ever increasing unemployed.

XitSam's picture

I doubt Señor Rubalcaba is offering his spare bedrooms to the homeless.

FeralSerf's picture

Who is going to pay for the vacant Spanish homes that are increasingly being owned by the insolvent banks?  The European taxpayer or saver?  Or perhaps the Fed with newly printed money?

Of what value or use are millions of vacant Spanish homes?  Do you really believe that society is benefited by taking these people from their homes that they are unable to pay for and leave them to die on the streets?  They have lost their jobs.  They want to work but there is no work.  The homes they used to live in and take care of are becoming inhabitable from lack of attention.

There are now many more homes in Spain than there are people to occupy them and somehow the answer seems to be to evict more people?   Sounds pretty stupid to me.

Stuntgirl's picture

Thank you for saying that.

The banks will not rent out the flats either. They just lock them closed and empty.

The state of abandon of certain blocks out of which over half of residents have been evicted present a health hazard for those still living there and paying up.

In some such blocks, neighbours keep watch to prevent the flats being broken into and turned into meth labs.

In others, neighbours help the evicted families or other families to break into the empty flats and live there regardless, again to ward off criminals and gangs.


The bad bank will be allowed to demolish some property. Maybe it's just about fixing the prices up.

dtwn's picture

Banks need to be allowed to fail so that the assets will be liquidated and purchased by solvent banks/institutions/investors at whatever lowered prices the market will bear.  Then existing mortages can be renogiated and new ones can be made for the vacant homes. Ridiculous that these perfectly good (well used to be at least) new homes and buildings are being left to rot and decay.  Mark to market needs to happen now!

Dabale arroz a la zorra el abad's picture

Or even better: why not let *people* buy these houses instead of banks/institutions/investors whose only goal is to speculate with them? Difficult in an open (free?) market where those who have more money will pay higher prices, thus leaving "the people" out of this game, again. The problem is that people happen to need houses inside which to live in. But of course, speculators have an absolute disregard towards people's needs.

slackrabbit's picture

I will buy one because

a. I rent and

b. I save, Therefore

c.  I must be a heartless criminal...or prudent...or stupid cos I 'don't know how to play the game'

You decide!

q99x2's picture

Evict the banksters and don't let them back in. Imagine a world without bankster terrorists. Why doesn't homeland security go after those deviates? NDAA those F'ers.

Matt's picture

Without banks, how would these people have homes? Do you believe that without banks, everyone can have the home they want, without having to save for it? If so, how?

And how would pensions / retirement work without banks and mortgages?

Bonus difficulty: no Tabula Rasa. How do we get from here to utopia, taking into account the current situation, rather than a fantasy clean start?

Peterus's picture

Is this bait?

Well... you never know on teh internetz.

I'll take it.

Frist things first - you can have banks without banks-ters. Consider only non-fraction reserve (100% gold to notes ratio) banknotes as "money" and stuff that is now in circulation toilet pap... ekhm I mean risky investment or low quality fiduciary media. No FED, no lending of last resort. No protections in law of any kind. No special privileges. Banks should take full responsibility for their actions. This will end junkie false credit injections, but in the long run mean investment and consumption based on reality - not drunken mad feeding frenzy of the boom and starvation of the bust.

Ofcourse "everyone will not have the home they want" (unless we get some kind of singularity?), but you'll get as much as possible, with less waste and less theft. There is nothing wrong with a loan, as long as bank or whoever is loaning the money HAS THE MONEY. Now they just loan air and underlaying actual commodity economy just doesn't stack to this madness.

You could plot way of going to sensible market based financial system - not utopia (it will have it's own challenges) - with no problems, considering you could just implement any change you want. However people in power, and people voting - will definately NOT let this changes happen even if some politician actually proposed them. So... crash is already certain, this discussion may be valuable in rebuilding after.

Invisible Hand's picture

Without agreeing with every idea, I would say that you basically are correct about what needs to be done to the banking system and what is coming (assuming we all don't end up in some communist/socialist hell).

Easy money is not free money.  Making it easy for people to borrow money they can't pay back only sets them (and the entire society) up to fail.  Allowing banks to lend money they don't have (borrow short to lend long always fails) guarentees an insolvent banking system.

We, as a society, have failed.  We are broke, we can't pay our bills.  We are, as they say, all hat and no cattle.

There will be a reset but it will not be pleasant and people will not continue to live as they have.

My parents paid cash for a tiny house and enlarged it gradually as they could afford.  They bought used cars, grew and canned most of our food, and had the same clothes for 10 years.

We are going to go back to a simpler, less stuff life style.  Those of us that survive the transition that is, unless we fall for the socialist lie (seems pretty likely after last week) and then we will have nothing (unless you are one of the 'more equal' animals).

MillionDollarBoner_'s picture

(assuming we all don't end up in some communist/socialist hell).

IH - I reckon you nailed it right there ;o)

centerline's picture

You forgot the /sarc

But, I am a bit concerned since the last question looked somewhat genuine (with a grain of salt on the uptopia thing).  lol.

css1971's picture

Money doesn't have to be debt. Banks don't have to use fractional lending practices. They can be bailment institutions instead.

There can be no reform of the current system while the vested interests remain in place, it is simply too profitable and they are too deeply embedded in the institutions of government. It will require revolution and possibly war to reform the system.

Joebloinvestor's picture

Expect another secret loan from Ben.

Stuntgirl's picture

Actually, she's the second suicide, but there were two other suicide attempts, all in the past few months.

Also this week, a man set a subsidiary of the same bank on fire, under similar circumstances. Then he politely waited for arrest.

When you miss the first payment on your mortgage, the bank has no incentive to renegotiate. The house is sold off to the bank itself for 60% of the appraisal amount, and the evictee still owes the rest, plus costs.

The evictee loses whatever he's paid up til that point, and whatever remaining debt (40%, which is close to the market value of the whole property) there is, and the house, plus eviction costs.

60% has only been for the last year or so, before that, banks could buy the property for 1€.


Matt's picture

Sounds like they have really crappy rules in Spain, and should make changes to how their mortgages work.

However, the people did still agree to these conditions when they got the mortgages. They understood the risks and placed their bets anyhow. 

Miss Expectations's picture

And thus I clothe my naked villainy
With old odd ends, stol'n forth of holy writ;
And seem a saint, when most I play the devil.


Stuntgirl's picture

There is some debate as to your last sentence.

I dared my boyfriend to enquire about mortgage terms from a bank because he did not believe they were lying to the extent I claimed.

He was assured multiple times that upon non.payment no further debt would accrue (in reality, up to 30% more debt than initially incurred) and he was also told that appaisal price used for eviction would be the initial appraisal (actually, the place would be re-appraised at eviction (possibly 30% less than initial appraisal) and 60% of that is what the bank would pay to itself on eviction.

They tried to sell him a mortgage with interest rate tied to a number of derivatives and complex financial instruments, which as I later explained to him, were badly mistrepresented to him by the bank.

He walked out in a confused daze, and he's not mentally retarded, he is a highly educated man in his 30s who went in already knowing he would be lied to.

By the way, the "stop the evictions" thing is actually aimed not at changing this, but at allowing people to stay in the property in exchange for a rent roughly 50% of the mortgage payment, while still losing the property and incurring a debt larger than represented. It is not about letting them live there for free, as some suggest.

FeralSerf's picture

So much for "They understood the risks and placed their bets anyhow."

Very few people understand the risks or the costs.  The lawyers and bankers don't want them to understand either.  How many people here really understand their own mortgage completely?

Stuntgirl's picture

I just love it when grocers sign mortgages denominated in USD or JPY with interest rate swaps.

css1971's picture

What they should do is burn their local bank branches till bankruptcy law is reformed... Or all the bankers are gone.

NumNutt's picture

I read the article about the guy burning down the local bank branch, pretty damn funny. Bet the branch manager never saw that comming when he decided to send out the property auction notice.  I think it is a great idea, there are a lot more of us broke as poor bastards then there are bank branches.   WIN, WIN as far as I am concerned. The banks get fucked, and the local governement looses the tax revenue of you working and owning property, and now they have to pay to house you in the local lock down.  So instead of ending up homeless, you get three meals a day, and a warm place to sleep.  All that and you are helping speed the fall of the federal government.  Sled ride to hell bitches!!!

Stuntgirl's picture

I love that guy too.

Perfect credit history for 30 years, same bank.

He gets fucked over.

He writes an explanation letter to his family.

He goes to the bank, asks the three workers in it to please leave as he will now burn it down.

He burns it down.

He goes home to wait for the police.

He politely accompanies them.

It's just.... elegant.

Ricky Bobby's picture

Unfortunately in the US it would be like this.

He burns it down.

He goes home and waits for the police.

Swat team is deployed with armored vehicle.

16 All black storm troopers surround house.

Front door broken down.

He jumps up startled.

He is shot 43 times while children crying.

Local news headline "Terrorist Attacks Police"


Boeing Boy's picture

Why not burn your own house down and claim the insurance?