Posted on 09/24/2009 8:16:27 PM PDT by blam
Spain Tips Into Depression
Spain is sliding into a full-blown economic depression with unemployment approaching levels not seen since the Second Republic of the 1930s and little chance of recovery until well into the next decade, according to a clutch of reports over recent days.
Published: 10:28PM BST 24 Sep 2009
The Telegraph (UK)
Bull run is over: Spain is sliding into a full-blown economic depression akin to that seen in the 1930s Photo: AP
The Madrid research group RR de Acuña & Asociados said the collapse of Spain's building industry will cause the economy to contract for the next three years, with a peak to trough loss of over 11pc of GDP. The grim forecast is starkly at odds with claims by premier Jose Luis Zapatero, who still says Spain's recession will be milder than elsewhere in Europe.
RR de Acuña said the overhang of unsold properties on the market, or still being built, has reached 1,623,000 . This dwarfs annual demand of 218,000, and will take six or seven years to clear. The group said Spain's unemployment will peak at around 25pc, comparable to the worst chapter of the Great Depression.
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(Excerpt) Read more at telegraph.co.uk ...
Depression + Socialism = War.
Get ready.
I think they won’t be the only ones. More of that coming from other nations soon.
The dominoes are starting to fall. Here, it is happening with a push from Obama and the loony left running this country.
It’s by design, of course...
Coming soon to your town.......
OMG! So many north africans and east europeans depend on them for survival! These people will be forced back to their own countries and they’ll starve there as well. This is NOT going to be pretty!
We were selling our house in 2005, and a missionary friend from Spain said it was impossible to afford a house there with skyrocketing prices.
She was encouraged by my approach and I told her not to worry about it - the bust would arrive.
Meanwhile, how much money did Real Madrid shell out for Ronaldo and Kaka?
What, another Spanish civil war to serve as a prelude to the big one?
First thing Spain should do is cut their corporate tax rate and deregulate their labor market to encourage hiring. Even if that increases their budget deficit in the short run they will still be much better off in the long run. Their central bank can just monetize the debt for a few years. They don’t need to worry about inflation for several years. We also need to cut the US corporate tax rate to make more corporate investments pay off an encourage hiring and growth. We should ax the last $200 billion of the Stimulus (”Porkulus”) bill and instead enact a $200 billion corporate tax cut through a broad cut in the corporate tax rate and not through tax loopholes for big campaign donors.
You own this one, Zapatero!
I read a few years ago that part of the housing boom in Florida was due to wealthy Britons who couldn't afford to buy in Spain were buying in Florida.
Both are busted now.
ARE THEY A CAP AND TRADE COUNTRY? I THOUGHT ENGLAND AND ITALY WOULD GO FIRST.
£220 million
Italy and Portugal will be next, then France. After that....
I predict italy and greece will be second and third behind spain.
25 percent unemployment will be unbearable for Spain’s MTV generation, something will have to give.
When I say, dominoes, I mean economically. Spain is perhaps where a Global Depression starts. I see it as a microcosm of something looming which is much larger.
WELL I guess we’re in agreement - Italy is coming soon! I am so frightened. The world....I just don’t want to say it.
For socialism to succeed, capitalism must fail, the two are completely incompatible...
Dostoyevsky said that for the people to totally accept Marxism, they must be broken, and without hope. And you’ll remember that OBAMA said that THIS generation, must sacrifice itself for the next.
We are at the cusp of something terrible. The question is, can enough people be pulled away from Dancing with the Stars, or American Idol, long enough to realize it?
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