How vulnerable is the Spanish economy? BBC 2 Newsnight

FYI

http://news.bbc.co.uk/1/hi/programmes/newsnight/8842758.stm

Paul Mason's 13.41 minute assessment broadcast last night.  However he made no mention of the €millions 'borrowed' illegally from would-be purchasers of Spanish property - try throwing that into the calculation...

ruth

ruth

yes, as usual there's no real analysis as to why the boom went so wrong, or why there are over a 1000,000 unsold homes?.  No mention of corruption, planning or lack of regulation, let alone the thousands cheated through these problems and the justice system itself. Surely theses details also have an influence on the vulnerability of the Spanish economy, despite the denial from those at the hub who could have made changes for the better long ago.

Goodstich

Don't worry - the information regarding corruption, negligence etc will soon be in the public domain and will again be brought to the attention of the Spanish & British media.

We have to keep banging on about these issues and hopefully one day we may get some reaction from those with the power to do something about it.

Watch this space.

Kind regards

Keith

It's always so sad to hear of people who had a dream for the future only to have it snatched away by those who seek to line their own pockets and their 'brothers in arms'. If a deal is too good to be true it usually is. Buying off plan was good in the early days but quickly became the way developers could fund their developments. They couldn't and still can't get the money from any major Bank or other financial instituation so they use 'the dream'  and your moneyto fund the development and live a life only a few ever achieve.

This just doesn't only happen in Spain. It happened big time in the US and Dubai.

As too how confidence is ever recovered it's difficult to see. I would not be suprised to see many of the mega blocks ruduced to rubble. After all would any of us really want to be the only occupants of a block built for several hundreds of people?

I  only hope that potential buyers really research their purchase and look at the future for any children they might be introducing to their dream of a new life in Spain. Not so much of a problem for us living off good pensions and investments, but for the younger generation who have to find work it will continue to be a big problem for a while.

So choose wisely using the head (and a spreadsheet) rather than just the heart. Get that good advise available on this Website and make an informed choice.

BTW it's 47 deg C here in Dubai today and am looking foreward to the weekend when we fly back to Barcelona for some cooler days.

David

Many purchasers who have suffered at the hands of the Spanish Real Estate industry, have then found that when their 'simple' case finally gets to court the Judge searches for any 'technicality' in an effort to pass judgment in favour of the Savings Bank, Bank or Developer.  It many cases it is totally unexplainable how the judge comes to such a decision.

We always suspected that the judical system was heavily influenced by politics.

But it was interesting to hear in Paul Masons Newsnight report that the Caja's (Savings Banks) who are so heavily involved in the real estate scandal are mostly run and managed by local politicians and priests.

So we suspect the judicial system is influenced by politics and the Caja's who on so many occasions are allowed by the Judges to avoid their liablities under LEY 57/68, are run by local politicians.................

The whole thing stinks of corruption.............

Kind regards

Keith

Keith

it does indeed. I believe the court delays are often part of this as well. The Developers/banks etc are given enough time to sort out (read salt away!)  cash and sometimes assets and oil the right palms before facing the so called justice system, often leaving those cheated with nowhere to turn, and no route for compensation from the guilty party/parties.

 Dear All,

our local corrupt developer has just had his appeal squashed by a stern judge who described corruption as the cancer in our public life here.

but of course there is nothing approaching the Spanish off-plan completely criminal deceit by so many lawyers employed and paid by the victims, if you cannot trust your expensive lawyer how can you proceed in any business?

If the Spanish judges were of any value the majority of the Spanish real estate lawyers would never see freedom again and rightly so.

Does anyone know of a single one who has been prosecuted???????

Regards

Norman

Norman you are not considered to be mumpsimus, even if you are able to jump buildings with a single bound and to run faster than a speeding bullet.

A review of all instances of court delays beyond a pre-defined timescale (say 3-5 months) relating to developers/banks would no doubt identify a pattern of abuse and hopefully identify those responsible?

 Likewise for those judgements that have been overturned?

ads

indeed it would. Any case won that's rendered useless by unreasonable delay should be looked as those in the right being cheated by the very system that's their to administer justice. Just how fast would the courts clean up their act if they were forced to compensate those cheated a second time by court delay??

It's just common sense really, but as is often the case in Spain, that can't be relied on.