Comments on: The Perfect Storm In The Spanish Banking Teacup http://fistfulofeuros.net/afoe/the-perfect-storm-in-the-spanish-banking-teacup/ European Opinion Mon, 13 Feb 2012 07:39:06 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Gregg M. Boore http://fistfulofeuros.net/afoe/the-perfect-storm-in-the-spanish-banking-teacup/comment-page-1/#comment-26956 Gregg M. Boore Thu, 10 Sep 2009 16:56:36 +0000 http://fistfulofeuros.net/?p=6232#comment-26956 " But the risk is that the problems are merely postponed". The Economist Again, the Economist gets it wrong in the first sentence of the above paragraph. It should read " But the problem is that the risk has been postponed ". Again, even the rest of the world as the US, does not want to face the reality that bubbles cannot be continuously blown and asset valuation is declining. If you look at US banks, particularly the big ten they have piled a cesspool of giant derivative risk amongst themselves. Who will save them when it all implodes ? This is the fundamental reason for wealth destruction. The collateral is worthless. ” But the risk is that the problems are merely postponed”. The Economist

Again, the Economist gets it wrong in the first sentence of the above paragraph.

It should read ” But the problem is that the risk has been postponed “. Again, even the rest of the world as the US, does not want to face the reality that bubbles cannot be continuously blown and asset valuation is declining. If you look at US banks, particularly the big ten they have piled a cesspool of giant derivative risk amongst themselves. Who will save them when it all implodes ? This is the fundamental reason for wealth destruction. The collateral is worthless.

]]> By: PatP http://fistfulofeuros.net/afoe/the-perfect-storm-in-the-spanish-banking-teacup/comment-page-1/#comment-26903 PatP Mon, 07 Sep 2009 01:06:50 +0000 http://fistfulofeuros.net/?p=6232#comment-26903 Edward, First & foremost, thanks for starting this debate about Spanish banks and the state of their property market. I have been scratching my head at how things work here in Madrid for a long time... I'd like to offer up some food for thought. Why would anyone in their right mind buy in Spain vs rent?? I recenty found some real bargain rental opportunities. 1100 euros for a two bedroom penthouse (90sq meters)+ 30 sq meter terrace in central Madrid, less than 10yrs old with views of casa de campo, pool, trastero (storage room), indoor parking spot, security. The owner would like to sell it for 550,000 euros but realizes the timing isn't right. By my calculations, assessments cost at least 250/300 euros a month and a tax bill of around 100 euros. You see examples of this all around these days. Owners are putting their places up for rent or sale. Asking price of 500,000 + euros but you can rent it for 1100 to 1200. Edward,

First & foremost, thanks for starting this debate about Spanish banks and the state of their property market. I have been scratching my head at how things work here in Madrid for a long time…

I’d like to offer up some food for thought. Why would anyone in their right mind buy in Spain vs rent??

I recenty found some real bargain rental opportunities.

1100 euros for a two bedroom penthouse (90sq meters)+ 30 sq meter terrace in central Madrid, less than 10yrs old with views of casa de campo, pool, trastero (storage room), indoor parking spot, security. The owner would like to sell it for 550,000 euros but realizes the timing isn’t right.

By my calculations, assessments cost at least 250/300 euros a month and a tax bill of around 100 euros.

You see examples of this all around these days. Owners are putting their places up for rent or sale. Asking price of 500,000 + euros but you can rent it for 1100 to 1200.

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