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The Spanish Financial System Completely Collapses And Spain Is About To Reboot With A 100 Percent Decline In GDP And 100 Percent Unemployment. It’s Absolutely Terrifying!!!

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The Horrific, Worst-Case Scenario For Spain

Spain is in trouble.

The macroeconomic outlook continues to deteriorate as unemployment rises. Angry citizens are protesting austerity in the streets.

At the same time, Spain has just unveiled its 2013 austerity budget, but the overly-optimistic macroeconomic assumptions underlying the plan foreshadow missed deficit targets in the coming quarters, which will likely force a new round of austerity measures, further worsening the economic contraction.

Meanwhile, the Spanish region of Catalonia is threatening to secede.

Technically, the “worst-case scenario” for Spain would be something along the lines of a 100 percent decline in GDP and 100 percent unemployment. No one is calling for that.

Presented here are all of the things that could go wrong, though. The recent work of Citi economists and strategists is heavily cited because they seem to be consistently more bearish on the Spanish situation than other shops

 

The Spanish Financial System Completely Collapses

…By itself, Spain is the 12th largest economy in the world, and right now it is a complete and total mess with no hope of recovery in sight.

The national government is broke, the regional governments are broke, the banking system is insolvent and Spain is in the midst of the worst housing crash that it has ever seen.

On top of everything else, the unemployment rate in Spain is now over 25 percent and the unemployment rate for those under the age of 25 is now well above 50 percent.

An astounding 9.86 percent of all loans that Spanish banks are holding are considered to be bad loans which will probably never be collected. Before it is all said and done, probably ever major Spanish bank will need to be bailed out at least once.

Manufacturing activity in Spain has contracted for 17 months in a row, and the number of corporate bankruptcies in Spain is rising at a stunning rate.


Read more at http://investmentwatchblog.com



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    • Mr A Hole - PHD, BSE, HN51, ADHD hons. DVT HIV

      This are rehashed figures from a few weeks back. I’ll tell you about Spain, firsthand… Im there at he moment…..

      The fincnai lsituation is pretty dire, yet there is plenty of cash about for drinking, buyig groceries, driving etc etc. Spain is not a country ofbaners,its young are but the real money, the peples assets are hidden away. Its the corps here who are breaking the people. Let me explain.

      In the rest of Europe, in particular the UK, nearly every prduct sold, from clothes to toolboxes are made in China, nearly every food consumed is either grown or farmed overseas, nearly every car driven comes from aother country, every bottle of wine drunk comes frm a farawy exotic place…

      Well not in Spain, Spain may be temporarily crppled by a digital economic collapse, it may even see riots regarding a lack of money from some sections of the population, mainly those in the cities, rich or poor, but…

      Spain grows more of its own food than any other European country, it produces more Spanish made products than imports them, from shoes to baby clothes, tools to technology, Nearly everything you buy in Spain, has a Made in Spain guarantee, local resentment towards the Chinese and cheap Euro shops selling low quality products is open and honest, the way it should be in a democratic society, bad qulaity is not something you generally find in Spanish manufacturing or craftmanship, take a look at SEAT’s rallying pedigree and the reliability of their cars for one example.

      So… whilst countries like the UK, USA, EIRE, Greece & Italy struggle for a long period, at grass roots level, regradless of what the MSM will tell you, or sets of figures like these will hint at, the Spainsh people will be eating, drinking, medning, fixing, making, creating and although they may not be so much actual money about. Quality of life will suffer alot less and in some cases not at all compared to their global counterparts.

      Add recent advancements in Solar Power and alternative energy, coupled with a climate and sunshine hours that put californai to shame, a fantastic football team giving the country a real sense of national pride, believe it or not an increase in tourism, although may be not an increase in tourist spend… and Spain suddenly bcomes not such a worry afterall,

      I would worry about the Brits and Germans having to eat their Iphones and burn their funriture to keep warm in the winter, more than I would worry about Spain, figures on computers do not a picture make….

      • HfjNUlYZ

        Wow, a whole new perspective! If Spain gets rid of the corrupt bankers (like Iceland), I’m there to live!

    • Anonymous

      Spain is in deep trouble and everyone knows it. No whitewashing will change that.

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