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Spanish Unemployment Tops Record, Rising At Fastest Rate In A Year
In yet another worse-than-expected macro data point, Spain has just breached the 27% unemployment level - the highest since at least 1976, when data began following dictator Francisco Franco's death. At 27.2% this is already higher than the IMF's year-end estimate of 27% suggesting growth estimates are already overly optimistic. What is more concerning is the rate of increase in the joblessness is rising once again. The 1.1 percentage point rise is the largest in a year and 177,700 more households now have no actively employed members than a year ago. The greatest fear though, for European leaders and the Spanish people themselves, is the surge in youth unemployment. As we have noted a number of times in the past, the possibility of social unrest is exaggerated significantly by this number and at an incredulous 57.2% of under-25s out of work, Spain is closing in on Greece, according to official data, for the worst youth unemployment situation in Europe.
and youth unemployment is surging towards Greece's levels...
Meanwhile, as far as the world goes, none of that matters...
Charts: Bloomberg
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Another good reason to ... cut rates!
Because it works (for stocks and bonds) even while no one is working!
Work is so old fashioned. Everyone should simply be provided for by the all knowing and all powerful State.
A few units of monopoly money, a cup of overroasted failbucks coffee, a couple of jumbo jacks, and a few choomphone calls a day... in return for your soul.
Lay-offs at Barcelona & R. Madrid
They should apply the American model, move the long term unemployed to long-term disability benefits. The 'real' unemployment rate would be much lower. Man, if only the europeons would think like the amerikans.
Cut rates? Send them the BLS. That will solve their problems once and for all.
Fortunately, this is not, by definition, a depression, cough.
The Spaniards are good at playing football. So just organise more football clubs and full employment will be achieved immediately.
Eig...
.
They were good at playing football...did you see the Champions League results the past two days? Down to the last 4 teams...2 German teams against 2 Spanish club teams...
1st Leg Results
Bayern Munich 4.................Barcelona 0
.
Borussia Dortmund 4............Real Madrid 1
.
Those lopsided scores are actually really unheard of for Real and Barca...not to take away anything from the German side(s), but still...those two Spanish clubs are huge and talented, and they both got crushed.
Anyway, carry on...
The Bundesliga as a whole has gotten some great players over the last few years, especially BM and Dortmund.
For sure Skate.
.
Of course club teams have international players playing along with the domestic players and my post needs to be taken with a grain of salt a bit. But still, very surprising scores lines from Tues/Wed.
Almost along the lines of Japanese-style dishonor for Spaniards to lose that bad!
Stern des Südens
Also I'd like to throw a few fuck fuck you's out to DVD, Real Madrid, anyone whos last name ends in Z or O, Barcelona, Chelsea (from last year you cunts), Theon Greyjoy, Cercie Lannister and Ben Bernanke.
i think both teams have payment problems. the players are not getting what they were promised ON TIME. hence the miserable results. their lack of motivation is so obvious.
It's hotting up over here in the EU temp. wise, next end of footie season, then you have a lot of hot bored unemployed people on your hands.
The domestic and international unions will give them something to do.
At least Spanish government statistiscs don't lie! That yield spread vs unemplyment rate gap is definitely not sustainable and I think we can safely say which one will close the gap eventually.
All governments lie. There's no penalty for doing so. Just imagine what the real unemployment numberr is.
Maybe I should have said that the Spanish government is not as blatant as the U.S. or U.K. government when it comes to lying about unemployment.
They should probably seed their sovereignty to Germany. ... Oh wait..
When you run out of other peoples money you've got to expect to lose a little sovereignty.
Even with all of the "government safety nets" we have here in the USA, if we had unemployment levels like this, our cities would all be on fire, and martial law would have long ago been declared.
Fuck you Bernanke.
The Spaniards could learn a thing or two from the BLS.
When numbers like these don't matter, why go through the bother of fudging them?
Mos def
Hell, our inner city unemployment rates are already over 127.5% and growing. The only things keeping the lid on are EBT cards, sec 8, drugs and a well armed populace.
Keep guns free and let God sort out the problems... Or for you atheists, let the Mass Darwin Awards begin
We can count on you for a few chuckles throughout the day. Keep it up.
At a practical level however, I am wondering as to what it will take in the EU periphiral counties to wake up. At some point you have to have work that will pay you a sustainable wage. The EU is playing a very dangerous game. NO?
I had a brief conversation with a youngish Spaniard who manages a restaurant in HK.
I asked him what was going on back home and his response was pure misery. All the young adults want to leave. Problem is where do they go? To be laborers in South America? So they wind up being despondent.
You can't get a loan from a bank to start a new business and there is so much corruption at the local level that the idea is an extravagant fantasy.
Not a pretty picture at all.
Say what you will but when fruad becomes the status quo, possession becomes the law and local corruption=free market. People will do whatever it takes to survive, period. If you built a productive business that provided a product of real value, yet politicians allowed society to collapse because of state mal-investment and mis-allocation of resources and capital what would you do? I sure as hell would take matters into my own hands as well. People tell this in not very compassionate, guess what, life is fucking hard, period, compassion without accountability always ends in "unforeseen" disasters. Look at India, one man's corruption is another man's income, much like one man's debt is another man's asset. Has been this way for a long long time.
Corruption is a Spanish Thang - especially in latin america.
Excellent observation from "on the ground." WilliamBanzai7
Problem is where do they go?
That is the ultimae question? Where do the unemployed of Europe and for that matter the world go? For centuries men from the EU periphery traveled the world in search of jobs. The EU was supposed to bring a new prosperity to Europe. Without that in the form of jobs, what good is the new Europe?
Clearly a positive for sovereign debt service.
Spain is closing in on Greece, according to official data, for the worst youth unemployment situation in Europe.
Hmmmm.......interesting. Both Greece and Spain desparate for revenue and jobs yet both countries have been bought by the environmental nazis. Eldorado can't get permits to develop their two gold mines in Greece and Astur Gold can't get their permit to develop their gold mine in Spain. Wouldn't you think government officials would be begging for revenue and jobs? I guess not if it involves gold.
stateside
Euro Collapse Explained in 3 Minutes
maybe old, but its still funny:
http://homment.com/euro-collapse
Thanks! One must find humor where one can in this.
No work is good work.
There's no business like no business.
Spain - the 51st state. We'll need another star on the flag
It is interesting you mention Franco. it is evident that there is no way the "democratic" parties - the once riddled with corruption - are going to get these people back to work. It looks as if the return to Caudillo politics is on the cards. Europe is going back into its past but this turbo-charged attempt to escape from its history has backfired and recreated the conditions of the past post-1918
Disillusioned youth. Yes, that sounds like a good and stable state. Europe in flames in 3....2....1...
These unruly youths are going to need something to occupy their time. I wonder what TPTB have in mind.
I have a business idea I would like to share. The flat-packed easy to assemble guilloutine! Something every youth should have! Cheaply made in China and sold non-profit in Spain, Greece and Cyprus for starters. Just short their bonds and you'll all make a killing!
Harboar Freight $119.95 !
Sounds like a great plan. You should submit some drawings to IKEA. Your idea, Swedish steel for the blades, Canadian lumber exported to China for the frame and cheap Chinese labor to manufacture it. Then Swedish experience for the distribution network as it is shipped back to Europe on a Danish owned shipping network (Maersk).
Everyone wins!
IKEA already has one:
http://rebelart.net/sokkomb-die-ikea-guillotine/001708/
Moar War will fix everything. Crash Smash Boom, we win!
The Spanish youth must collectively be smoking some mighty fine weed to stay this cool. Maybe the trigger point for riots and rampage is 35-40%, but as is the case in most of Europe the youth are still too comfortably numb, dumb and unfocused, and generally believe the shit they consume in the msm.
The entitled generation think nothing of it. After all, nobody is taking away their collective rights to a share of redistributed wealth, and they are taught that's all that matters. Liberty? What's that?
Moroccan hashish otherwise known as "chakollate'"
Yields go down for a country that has 27% unemployment for people who should be entering the most productive phase of their lives? Yeah this should end well.
Not to be a prick but though numbers may be "incredible" only people may be "incredulous."
Oh how charts can mislead..................
The under 25 youth unemployment chart makes it look like the Euro introduction was a good thing for EU youth employment and the collapse of Lehman's was a bad thing.
Some of us know better than this, but expect such charts to be on top of the pile with EU leaders and EU-crats.
Remember when the spainish voted in the liberal Zapatero and he pulled out of Iraq, increased public spending and squandered billions on renewable.s...He as, Obama was a liberal socialist darling. Well this is what happens when you spend money you don't have....and support ridiculous liberal pipe dream! This is America's future thanks to Obama and the democrats, of free healthcare, lots of drugs, unlimited government spending and all expensive renewable energy...don't forget corrupt banks and government to boot!
He also had a lot of connection with Cajas
http://news.kyero.com/2011/10/28/spanish-banks-will-not-need-public-fund...
http://www.nytimes.com/2011/11/05/opinion/the-aging-of-spanish-democracy...
http://www.surinenglish.com/20090606/news/spain/zapatero-says-some-spani...
According to press reports, David Marino, ex-general manager of a developer called Dico, has claimed, in a notarised affidavit, that a bribe of 600,000 Euros was paid to obtain planning permission for an urbanisation called El Mirador de Vera where Zapatero bought a holiday home a few years ago. The anti-corruption prosecutor has started an investigation into the alleged bribe.
Rumour has it that Zapatero, who bought a semi-detached bungalow on the urbanisation for around 450,000 Euros from a private vendor, may have already sold his property, though the property is reported to be still in his name in the official property register.
Marino claims that his former employer paid bribes to officials of the town hall, run by the Andalucista Party, to reclassify 300,000m2 of rural land into building land, making the land ten times more valuable. A total of 5 million Euros in bribes were paid in various different deals, he claims.
Furthermore, the El Mirador de Vera urbanisation is built on an old riverbed, causing numerous problems for owners whose basements have been flooded.
Julián Jiménez de los Galanes, president of the developer Dico, denies all the accusations made by Merino, dismissing them as motivated by spite. He told the Spanish press that there is no proof that any bribes were paid, and that the prosecutor will soon shelve the investigation. Like many other Spanish developers, Dico is currently in administration for insolvency.
Zapatero is not the first political big cheese to own a holiday home affected by controversy. In 2005, former president José María Aznar bought a penthouse in the Hoyo 15 development of Guadalmina Baja, one of Marbella’s numerous illegal developments.
Fuck social unrest. What all those poor fuckers should start is a fucking revolution - or they will be troika-fucked for the rest of their lifes.
Tonight might get tasty as they march on the govt, problem is the MSM in Europe will state it was only a hundred or so...
What's really concerning is that is should now be clearly evident to the EU given the declines in Portugal and Spain, that the current process is NOT working and that they can expect Italy and the Netherlands next with France and the UK not far behind. Fine if the plan is simply to buy time before a collapse but I would only count on the Germans to plan ahead and re-establish the Deutschmark on the day of the crash...all others will be swinging in the wind.
The last time they had full eployment was 1938 Spanish Civil War .... Trabajo haz libertad .... Arbeit macht frei .... North Korea and the Cuban model have full employment !
If things don't slowly turn around next quarter....
then wait longer.
Food for thought.
When the unemployment reaches 100%, it can not go any higher!!!
Everyone knows that if Push come to shove there is a vote, and the Germans do not have the vote.
So buy the periphery bonds and short the treasuries.
It is shrinking of periphery bond yield which coudl potentially trigger a recovery in Spain, not the other way around.
You affect expectation by proving a put and people buy. The expectations then affect reality.
In the short term it works, in the long term it has disastrous consequences.
Cigarette cases will soon be in vouge.
España no es Grecia!
I think I see the Spanish Armada off the coast, yes, that must be them...oh wait, it's just a flood of disaffected refugees, never mind!
Let them eat..... PAELLA!
The Germans have outsourced the unemployment. Well done!