As our readers know, The Trader is getting increasingly bearish on the Spanish situation (and the market). The Spanish economy is facing multiple problems going forward. The hang over from glory days is about to accelerate. While investors still seem to be focusing on the Greek “deal(s)”, we suggest shifting focus to Spain. Those dirt cheap houses will become cheaper….
The economy is not feeling well, the unemployment is still rising, and people are getting poorer by the day. According to latest stats, only Latvia and Romania are behind Spain, when it comes to disparities in the Euro area. From EurActiv;
El Mundo says today ‘More than 11 million people under poverty risk in Spain’ while ABC is saying ‘Poverty, more intense than ever, has left 30,000 roofless so far’.
The report ‘Exclusion and Social Development 2012’ was launched yesterday by Caritas Spain and the ‘Foundation of Social Studies and Applied Sociology’ (FOESSA) in Caritas Spain´s headquarters.
The charity says 22% of Spanish homes are living under the poverty line. And 30% are facing serious difficulties in surviving to the end of the month and consume less meat or use less heating than bearable.
Greece will eventually fall. Where to look for the next set of violence is probably Italy and the very “quiet” Spain. The problems Spain is facing are huge. Spain is also the only country with a property collapse, that is slowly collapsing further, while people enjoy the sun. With so many unsold homes, the balance sheets won’t look good for many years to come. Despite the political juice from Zapatero, austerity plans and talk of a brighter future, people are suffering, and getting poorer by the day. Spain just hit new alarming Poverty levels, and there is no leveraged EFSF to save Spain.