Monday, November 29, 2010

Spain's Property Bubble Sounds Familiar: 6 Years of Supply

Reported here by Ambrose Evans-Pritchard:

We can argue whether the overhang of unsold properties in Spain will reach 1.5m, or six years’ supply, as claimed by Madrid consultants RR de Acuna, but there is little doubt that the "Cajas" and smaller banks have played a game of “extend and pretend” to disguise the true scale of losses on their property loans.