Spain’s credit crunch is different

The news today. You know when the shit finally hit the fan (or missed it by an inch) when: “Gold, oil and farm products hit fresh highs” [Inflation up, petrol up, food up]

BBC: “Fed boss seeks US homeowner help” [You put me in a sticky situation, get me out of here… please]

However, there is a place in Southern Europe where life is different. This is a place of confidence in the future and prodigious market and trend reading. It is a financial greenhouse where minus is plus and bad is good. It is the place where the draught and excess of sun have dried up the minds of its citizens, government and opposition. It is a place where the reckoning say somehow is always late, and with the dangers of the time multiplier.

In a country where the Finance Minister says things like:

El País: “El paro ha subido, es verdad. Pero el empleo ha subido más” [so all saved then, after all it’s just a matter of faith not economics, isn’t it?] [Keep believing 05/03/2008]

From the masters of “4.2% inflation and 4% GDP growth is time for celebration”. From the directors of “worldwide credit crunch will not affect us”.

From the country with an economy 1/5 the size of that of the USA but with an estimated 3 times more unsold housing stock.

From the country which went for a 800,000-a year house building spree (against 200,000 targeted in the UK but never met)

Soon at a cinema near you: “Spain is different. Because they say so.”

Dios nos pille confesados.



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