Spain is officially insolvent

[Medanoman]

Spain is officially insolvent: get your money out while you still can

from the The Daily Telegraph


http://blogs.telegraph.co.uk/finance/jeremywarner/100024476/spain-is-officially-insolvent-get-your-money-out-while-you-still-can/

[golf birdie]

IMO anyone who leaves large amounts in any Spanish bank is a fool.

[seanocelt]

Read that report last week, but the writer has taken flak for it, and previous articles. Food for thought though.

[Fivepence]

Read that report last week, but the writer has taken flak for it, and previous articles. Food for thought though.

You may well be right Sean but Cyprus was a wake up call.............can anyone afford or be foolish enough to take the risk?

[ribuck]

Spain budget deficit: 6.9%
UK budget deficit: 8.0%

Spain national debt: 84.1% of annual GDP
UK national debt: 88.7% of annual GDP

Who is most insolvent?

[Fivepence]

Spain budget deficit: 6.9%
UK budget deficit: 8.0%

Spain national debt: 84.1% of annual GDP
UK national debt: 88.7% of annual GDP

Who is most insolvent?

No one could dispute those facts ribuck...............but perhaps our ability to recover is better!. :dontknow:

[Medanoman]

Indeed ...all the UK has to do is print pounds, to devalue the debt...the Spanish on the other hand cannot do that.

[Fivepence]

Indeed ...all the UK has to do is print pounds, to devalue the debt...the Spanish on the other hand cannot do that.

Another valid point Medanoman...............it's all a bit farcical really.:thanx:

[universal]

The following is a report from Reuters published at the end of April 2013:

The government's preferred measure of public borrowing - which excludes some effects of bank bailouts and a one-off Royal Mail pension transfer - fell to 114.2 billion pounds in the tax year which ended in March.

This equates to 7.4 percent of economic output, down from 7.9 percent in 2012/13, and is well below a peak of 11.2 percent just before the coalition came to power in May 2010.

But it is still far higher than in most other major advanced economies as Britain struggles to deal with the long-term effects of the financial crisis.

The economy has been broadly stagnant for the past two years, and gross domestic product data on Thursday will show whether the economy has slipped back into technical recession for a third time in less than five years.

Most of the fall in government borrowing was due to a scheme that transferred bond interest previously paid to the Bank of England back to the Treasury. Without this, the deficit would only have fallen to 7.8 percent of GDP.

This year the government aims to cut the deficit to 6.8 percent of GDP, but economists warned even this could be hard, especially as some annual spending that would normally have taken place last year has been pushed into the current year.

- - - - - - - - - - merged double post - - - - - - - - - -

The cost of servicing this debt is around 3% of GDP or roughly equivalent to the U.K. defence budget.

[seanocelt]

Just read an article about Andalucia wishing to take over distressed properties and rehousing people in financial distress, punishing those who have kept up with payments, paying the banks 2% of the value per annum for 3 years.! AND....the Canarian Gov is looking at it!

[universal]

Canarian Govt has already had a look at this one and plans to implement it in September.
However Brussels is now questioning the legality of this move.....

[TF1]

Just read an article about Andalucia wishing to take over distressed properties and rehousing people in financial distress, punishing those who have kept up with payments, paying the banks 2% of the value per annum for 3 years.! AND....the Canarian Gov is looking at it!

The truth is that Andalucia have passed legislation which allows them to use empty, repossessed homes to rent to homeless families. The banks have had their state bail outs, they have embargoes on the lives of those they have repossessed, and they also have their properties. I think it is a brilliant idea, the banks have hundreds of thousands of properties on their portfolios and are just hoarding them until the crisis ends. If they have received state bailout funds, they should put up the empty properties for use as co-lateral.
I can't see it being blocked by the EU: in Holland if you leave your house empty for 6 months the government can use it to rent out.

[Fivepence]

The truth is that Andalucia have passed legislation which allows them to use empty, repossessed homes to rent to homeless families. The banks have had their state bail outs, they have embargoes on the lives of those they have repossessed, and they also have their properties. I think it is a brilliant idea, the banks have hundreds of thousands of properties on their portfolios and are just hoarding them until the crisis ends. If they have received state bailout funds, they should put up the empty properties for use as co-lateral.
I can't see it being blocked by the EU: in Holland if you leave your house empty for 6 months the government can use it to rent out.

If this is true TF1, and I have no reason not to believe you, in my personal opinion it is disgraceful and wrong.

May be they should change the timescale to 1 week and stop people having a holiday..............:whistle:

[ribuck]

If this is true TF1, and I have no reason not to believe you, in my personal opinion it is disgraceful and wrong.
It is indeed disgraceful and wrong, and there's a similar scheme in the UK (http://en.wikipedia.org/wiki/Empty_Dwelling_Management_Orders) (except that the period is longer).

After a property is empty for two years, UK councils can get an Empty Dwelling Management Order. This gives them the power to take over, repair, and rent out a privately-owned house. The council then deducts their costs, and if there's any rent left over it goes to the property owner.

You are safe from an EDMO if you are fixing up your property to put it onto the rental market, or if it's for sale, or if it's a holiday home, or if you're in hospital.

[Fivepence]

It is indeed disgraceful and wrong, and there's a similar scheme in the UK (http://en.wikipedia.org/wiki/Empty_Dwelling_Management_Orders) (except that the period is longer).

After a property is empty for two years, UK councils can get an Empty Dwelling Management Order. This gives them the power to take over, repair, and rent out a privately-owned house. The council then deducts their costs, and if there's any rent left over it goes to the property owner.

You are safe from an EDMO if you are fixing up your property to put it onto the rental market, or if it's for sale, or if it's a holiday home, or if you're in hospital.

They always say 'you're never too old to learn'..........shocking. :thanx:

[TF1]

But in the case of Spain, it is only the banks, not individuals, who get the properties seized. :tiphat:

[poker]

Well i,me putting all my money into "BARS OF CHOCOLATE"
(Always a market for that):yum:

They already changed all their money into bars of gold and sent it of to switserland ( they have chocolate also there ) .

[Balcony]

It's still pretty scarey to think that something similar to what happened with Cyriot banks could happen in Spain - the past masters of government theft...IMHO.

[TF1]

Don't get me started on bloody Spanish banks! :devil2: The cause of 80% of the crisis!

[golf birdie]

Spain budget deficit: 6.9%
UK budget deficit: 8.0%

Spain national debt: 84.1% of annual GDP
UK national debt: 88.7% of annual GDP

Who is most insolvent?

Britain is not in the euro and is not ruled by the Germans so it can set its own policy. If the Germans demand the money from accounts in Spain they will get it just as in Cyprus.