MercoPress. South Atlantic News Agency
Net capital outflows from Spain equalled more than 50% of country’s output
Bank of Spain figures show that net capital outflows—including bank withdrawals and sell-offs of Spanish stocks and bonds—equaled more than 50% of the country’s economic output over the year ended July 31. Read full article
Comments
Disclaimer & comment ruleslike once Argentina !
Sep 08th, 2012 - 09:46 am - Link - Report abuse 0“Corralito” a la Gallega coming soon.
Sep 08th, 2012 - 12:23 pm - Link - Report abuse 0Who next?
Britain perhaps? ummm...
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Sep 08th, 2012 - 06:26 pm - Link - Report abuse 0What a disaster! Austerity really isn't working!
Sep 09th, 2012 - 06:21 am - Link - Report abuse 0Well some are fleeing others are picking up bargains....I myself have just picked up two beautiful apartments on the costa del sol at a bargain.
Sep 09th, 2012 - 07:35 pm - Link - Report abuse 0Spain has always been a basket case. As far back as 2007 (when Spain was still looking good) a lot of investment houses were advising against Spanish investments and especially those in property.
Sep 09th, 2012 - 10:01 pm - Link - Report abuse 0Spain's main problem was a complete over reliance on the construction/housing market and foreign investment into those fields which equated to over 21% of GDP.
With a position like that as soon as a slow down occurred investors would stop buying new property leaving many apartment blocks, hotels and houses without owners and if the slowdown increased then a lot of investment would leave the country which in turn would drive the housing market even further down.
I remember in early 2009 when the signs of desperation were setting in some companies were offering free cars or even bigger gifts for a deposit on a new apartment.
And the problem with austerity at this point is, reducing public spending at a time with the economy is in free fall is only going to accelerate that free fall even if on a wider context you need to do so because the public sector can no longer be supported by the private sector its going to cause more damage. Still there is no way the EU will continue to bail out Spain without a aggressive austerity/deficit reduction plan.
It's a shame because I'm a big fan of Spain and this situation is only likely to worsen over the near future.
*6 oh don´t be so negative!! come down and enjoy the sun and the women and pick up a bargain or two!!!
Sep 10th, 2012 - 08:08 pm - Link - Report abuse 0It's just reality, nothing more, nothing less.
Sep 11th, 2012 - 06:04 pm - Link - Report abuse 0I personally don't invest my money in investments that are unlikely to provide a return.
I also suspect your two property purchases are nothing more than a figment of your rather unusual imagination.....
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