Everything is very expensive while the average salary is basically 1000 euros net per month.

I can’t see any first time buyers in the property market while the sellers refuse to lower their asking prices to realistic levels.

My point is that the Spanish are very reluctant to take a loss! I wouldn’t be surprised to see the Spanish banks in a very similiar situation like the big American banks.

The massive housing bubble has burst here but the banks and sellers choose to ignore it and hope that things will rebound. One day, very soon it will all come crashing down.

Markets always return to fundalmentals.

This confused me! I thought it meant 10% of the assets were worth 3.41 billion.

Regarding Spanish banks moving into property ownership rather than foreclosing; it is a natural behaviour in the circumstances, for human nature being what it is, if you can’t avoid something painful, put it off for as long as possible of course, the fact is putting it off may cause you *more* pain in the end. It’s like not going to the dentist when you have tooth ache.