There are scathing articles out in FT germany which quickly denounce the latest german move as populistic simply. Politicians when being made aware of homemade problems (and Greece is a typical homemade credit problem) start fingerpointing and want others to pay for their own faults. Call it the german export bubble all financed by no down, no tax, no doc loans to Greek, Portuguese and Spain entrepreneurs.
Wonder why every other day european real estate funds close down or stop redemptions? All that crap has been put into OPM funds.
>>>>>>>>>>
The residential real estate bubble in Spain saw real estate prices rise 201% from 1995 to 2007[7]. € 651,168,000,000 is the current mortgage debt (second quarter 2005) of Spanish families (this debt continues to grow at 25% per year - 2001 through 2005, with 97% of mortgages at variable rate interest). In 2004 509,293 new properties were built in Spain and in 2005 the number of new properties built were 528,754[8]. 2004 estimations of demand: 300,000 for Spanish people, 100,000 for foreign investors, 100,000 for foreign people living in Spain and 300,000 for stock[citation needed]; in a country with 16.5 million families, 22-24 million houses and 3-4 million empty houses. From all the houses built over the 2001-2007 period, "no less than 28%" are vacant as of late 2008[9] |
