What Spanish Recovery?
One of the prevailing themes in recent weeks has been that Spain has transformed out of Europe's economic basket case into a success story. This was further exemplified today by the following quote by DieselBOOM:
- DIJSSELBLOEM: SPANISH RECOVERY IS ON TRACK
- DIJSSELBLOEM: SPAIN COULD BE FRONT RUNNER OF EURO-AREA RECOVERY
It could, if one listens to bureaucrats peddling snake oily hope, but certainly not based on actual dynamics in its housing market, where mortgage apps have tumbled 90% from all time highs, pocket change investment by Bill Gates notwithstanding, and where even the YoY change has now trippled dipped.
... and certainly not based on loan to companies or households, which continue to be the worst in the Eurogroup.
So one wonders: with a housing market deader than ever, and with loan creation that is the worst in the Eurozone, will the modest bounce in employment, which as we explained last week was all driven by a seasonal jump in temp and self-employed workers, just where is Mr. DieselBOOM and the endless ranks of Eurotopians seeing this mythical Spanish recovery? Aside from the IBEX of course, which like every other liquidity-bubble dependent indicator is merely reflecting the roughly $3 trillion in annual global liquidity injections by the world's central banks?
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