05-12-2008, 10:04 PM
Spain Is in Big Trouble<!--sizec--><!--/sizec-->
By Tom Dyson
<span style="color:#483D8B">In the last two months, Spain has dumped 80 tons of gold onto world markets. It has also flogged huge quantities of U.S. Treasuries, British gilts, and other similar reserve investments at a similar rate.
Why?
According to an article in London's Daily Telegraph, the Spanish government is running out of money.
The Banco de Espana now has less than $17 billion in foreign currency and gold reserves left.
This is enough for just 12 days of imports.
...
The results are amazing.
For one, Spain has the largest current account deficit in the industrial world after the United States.
This is astonishing for a country with only 40 million people and that until recently was still considered a third-world country.
Spain's current account deficit is now 10% of GDP.
Household debt has risen to 133% of disposable income... the highest level in the world. (The U.S. ratio has just reached 110%, its own personal best.)
Second, Spain has the largest property bubble in the world.
More than 800,000 homes were built last year in Spain, beating France, Germany, and Italy combined.
House prices have risen 270% over the past decade.
A real bubble in housing construction formed last year.
One builder called Astroc listed in June 2006. It's stock rose tenfold in the last nine months.
Construction now represents 16% of total Spanish GDP.
Então... e nós por cá: esperamos dias melhores com mais rendimento (segundo Sócrates) ou dias difíceis a apertar o cinto (segundo Sócrates)?...
By Tom Dyson
<span style="color:#483D8B">In the last two months, Spain has dumped 80 tons of gold onto world markets. It has also flogged huge quantities of U.S. Treasuries, British gilts, and other similar reserve investments at a similar rate.
Why?
According to an article in London's Daily Telegraph, the Spanish government is running out of money.
The Banco de Espana now has less than $17 billion in foreign currency and gold reserves left.
This is enough for just 12 days of imports.
...
The results are amazing.
For one, Spain has the largest current account deficit in the industrial world after the United States.
This is astonishing for a country with only 40 million people and that until recently was still considered a third-world country.
Spain's current account deficit is now 10% of GDP.
Household debt has risen to 133% of disposable income... the highest level in the world. (The U.S. ratio has just reached 110%, its own personal best.)
Second, Spain has the largest property bubble in the world.
More than 800,000 homes were built last year in Spain, beating France, Germany, and Italy combined.
House prices have risen 270% over the past decade.
A real bubble in housing construction formed last year.
One builder called Astroc listed in June 2006. It's stock rose tenfold in the last nine months.
Construction now represents 16% of total Spanish GDP.
Então... e nós por cá: esperamos dias melhores com mais rendimento (segundo Sócrates) ou dias difíceis a apertar o cinto (segundo Sócrates)?...
..................................................................................................................
I know you believe you understand what you think I said, but I am not sure you realize that what you heard is not what I meant....
.................................................................................................................
I know you believe you understand what you think I said, but I am not sure you realize that what you heard is not what I meant....
.................................................................................................................
![[Image: trkbarruicarneiro2ao.jpg]](http://img230.imageshack.us/img230/1831/trkbarruicarneiro2ao.jpg)
![[Image: 78367385.jpg]](http://img90.imageshack.us/img90/6333/78367385.jpg)
