Archives for August 2009

August 31st, 2009

Just as speculation about the health of the banking system in the U.S. seems to be quieting down, there's reason to believe that foreign banks - particularly two Spanish institutions - are about to go under the microscope, even as the pair snaps up assets in foreign countries. Banco Santander (STD) ...

Continue reading The Hidden Truth Behind Spanish Banking ‘Strength’

August 28th, 2009

The global economy is starting to bottom out from the worst recession and financial crisis since the Great Depression. In the fourth quarter of 2008 and first quarter of 2009 the rate at which most advanced economies were contracting was similar to the gross domestic product free-fall in the early stage ...

Continue reading Significant Risk of Double-Dip Recession

August 27th, 2009

The problem that many Britons are facing is that the high value of the euro in relation to the pound has eroded the benefits that they could otherwise have gained from the falling Spanish property market. What's more, others are worried about how safe an investment made into Spanish bricks and ...

Continue reading Is it Safe to Buy Property in Spain Now?

August 26th, 2009

According to an article in the Spanish newspaper, Expansion, one in five Spanish mortgages is now considered as being high risk and liable to become "non performing". The mortgages at greatest risk are naturally those contracted after 2005 where the loan to valuation was over 80% of the total. In 2006 ...

Continue reading 20% of Spanish Mortgages Now High Risk

August 24th, 2009

Economic analyst Variant Perception has accused Spanish banks of hiding losses and predict its economy will become like the economy of Japan in the nineties. In a report entitled: ‘Spain: The Hole In Europe’s Balance Sheet’, Variant argues that the Spanish property crash is worse than is widely believed and Spanish ...

Continue reading Spanish Banks Worst Bet in Europe

August 21st, 2009

Nowhere in Europe has more bargain-basement holiday homes. Yet in spite of falls of between 30% and 50% in some areas, many Britons appear to be waiting to see if prices fall further before the pain in Spain ends. Though some estate agents and desperate developers claim the recession is over ...

Continue reading Time to Bag a Spanish Property Bargain?

August 20th, 2009

Jon Hunt, the Foxtons estate agency founder who picked the top of the housing boom in 2007, says he believes the 18-month property slump is close to an end. Mr Hunt, who sold Foxtons for about £370m on what turned out to be the eve of the credit crisis in the ...

Continue reading Property Slump Close to an End?

August 19th, 2009

Housing formed the epicentre of the global financial crisis. It was a fall in residential prices that shook and cracked the banking system. News that housing markets are starting to level out is cheering. It would, however, be naive to assume that the housing market is now on firm and steady ...

Continue reading Property Bouncing Back – Slowly

August 18th, 2009

Spain's services sector fell into more severe contraction in July, with activity and new orders declining at faster rates than the month before, according to the Markit Purchasing Managers' index. The indicator dropped to 40.8 from 41.2 in June, its 19th consecutive monthly fall although well above the low of 28.2 ...

Continue reading Spanish Services Contraction Deepens in July

August 17th, 2009

When private property is cheaper than social housing you know that something is wrong. That appears to be the case in parts of Catalonia like Barcelona, where private property is now often cheaper than social housing, reports the Spanish daily El Pais Thanks to a property market crash that has driven ...

Continue reading Subsidised Spanish Property Too Expensive

August 14th, 2009

The number of businesses and individuals filing for bankruptcy in Spain reached a record 3,285 in the first half of this year, or triple the figure in the same period in 2008. Firms and the self-employed accounted for all but 515 of the filings, the National Statistics Institute (INE) said Wednesday. By ...

Continue reading 3000 Spanish Bankruptcies

August 13th, 2009

Eurozone inflation has fallen deeper into negative territory, according to official data that suggests risks of deflation remain in spite of the region’s improved growth prospects. Consumer prices in the 16-country zone were 0.6 per cent lower in July than a year before, according to Eurostat, the European Union’s statistical office. ...

Continue reading Eurozone Deflation Threat

August 11th, 2009

Just as investors pluck up the courage to once again dip a toe in the Mediterranean housing market, along comes a killer flu pandemic that keeps bargain-hunting foreigners thousands of miles from a purchase. Earlier this week, Palma Property Auctions – one of Spain’s biggest holiday home auctioneers – said rising ...

Continue reading Swine Flu Dents Spanish Property Sales

August 10th, 2009

Spanish banks have been doing their best to shield themselves from the bursting of the country’s property bubble. By buying properties before the loans on them go bad, lenders can mask their worst bets. Restructuring loans has the same effect. Help is now at hand from an unlikely source: the normally ...

Continue reading Spanish Property Tricks and Mortar

August 7th, 2009

Spain's Santander, the eurozone's largest bank, reported a first-half net profit of EUR 4.51 billion, down 4.5 percent from last year. For the three months to June, it had a net profit of EUR 2.42 billion, down 4.0 percent but still the second highest quarterly profit in its history, following that ...

Continue reading Spain’s Santander Bank Profit Down 4.5%