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Another EU government is expected to fall this weekend (at least this one is by election) when...

Another EU government is expected to fall this weekend (at least this one is by election) when Spain heads to the polls. The next PM is expected to be the conservative party's Mariano Rajoy, a "true believer" in the joys of austerity and fiscal reform. Tomorrow's crisis today: Spanish banks continue to carry property assets on their books that do not yet reflect the sharp depreciation in values there.
Comments (15)
  • Spanish banks carry assets on their books that do not reflect the sharp depreciation in value. I suggest that Spanish banks are not alone. Have French banks adjusted their loan values? Have US banks adjusted their loan values? This drama has a way to go.
    18 Nov 2011, 07:45 AM Reply Like
  • Spain's probably in worse shape than Italy and everyone's now figuring that out I think. With very high unemployment and no more RE to fuel growth seems like it's going to be a very rough ride.
    18 Nov 2011, 07:54 AM Reply Like
  • Dont forget the real estate bubble. On the other hand the national team will probably will the next Euro Championships so all its good.
    18 Nov 2011, 05:08 PM Reply Like
  • They need to get more Goldman Sachs boys at the helm...all is good....
    18 Nov 2011, 07:55 AM Reply Like
  • European press reaction as of November 18th to Spain’s election this weekend. – a certain continuity.

     

    http://bit.ly/tzRTRo

     

    http://bit.ly/u9bKHs

     

    http://econ.st/rIcADl
    18 Nov 2011, 11:35 AM Reply Like
  • More press commentary in advance of the Spanish election

     

    http://bit.ly/w5dBcS

     

    http://bit.ly/vHsEDW
    18 Nov 2011, 04:45 PM Reply Like
  • And i thought October was supposed to be week all the crazy crashes happened in.
    18 Nov 2011, 05:07 PM Reply Like
  • We're spoiled. We've lived through a period when every decline was a buying opportunity -- buy the dip. We're heading toward a 'dip to end all dips' I'm afraid. Too much complacency in the markets.
    19 Nov 2011, 01:02 AM Reply Like
  • Michael,
    Yes seems the odds on favorite is a steep market decline. The question becomes how low? And the second question is at what level will the Fed and world central banks massively intervene yet again?
    19 Nov 2011, 10:23 AM Reply Like
  • The "joy" of fiscal reform and austerity? Wow. THAT is learned helplessness! Morale has improved; the floggings can stop.. There is no more Spanish sovereignty. It will soon be a German province.
    19 Nov 2011, 04:29 AM Reply Like
  • As long as the ECB refuses to print money, Italy, Spain and Portugal will fail. Germany will not and cannot bail out these 3 socialist duds. The Eurozone is kaput!
    19 Nov 2011, 12:25 PM Reply Like
  • So you knowledgeable guy: since when is Italy socialist? The discussion on this site when it comes to Europe mostly lacks insight and is completely exaggerated. Everything that has a touch of "social" in it is called socialist here, even if it is not.
    19 Nov 2011, 01:09 PM Reply Like
  • Spain the First European Elephant to go down
    19 Nov 2011, 11:30 PM Reply Like
  • The US banks also carry property valued without discount as does the US government through Fannie Mae and Freddie Mac. Also the US deficit is worse than Spain's in GDP. So where we get off lambasting them when we are worse beats me. It is a bit hypocritical to say the least.
    20 Nov 2011, 12:51 AM Reply Like
  • All never head Dr Doom ! Roubini was right last time an he will be right this times. The only hope to keep this horrific scam alive is using CDOs to leverage CDOs via the ESFS and that won't happen as they can't sell it to the BRICs .
    And,the ultimate scam set up by Sec Geitner of using the US Tresury at 1 to 9 is political madness as Obama needs to get re-elected an the Fed is scared to do another secret deal now. Had the election been over .Boom.. The US Treasury would arm the bazooka an the Fed puts up 8 bucks to the Treasury's one an the Treasury backs the loan ! That "IS" the plan folks ,but, nobody follows facts ! Only spew out nonsense and that goodness this all will implode before the US debt hits 120 trillion ! Death will come soon to a major part of the EU an maybe as foretold wars there. And, there is a permanent bridge set and the pond is crossed as anyone can see with US bank stock prices an trillions of $s worth CDSs have been sold and you can bet the world will not allow US banks to not pay as EU banks are being forced to take haircuts. Patience ! gb
    20 Nov 2011, 01:59 AM Reply Like
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