I find this blog very interesting
Spain public and private debt are a great concern right now, when an economy is in a recession a large unpaid balance of private and public debt causes deterioration of economy and will cast doubt on the repayment of this debt, forcing to pay high interest rates as investors worried about its solvency
The private-sector debt stands as an impediment to Spain’s long term growth ,to be sure that not all of the private debt is backed by assets in the shaky Spanish economy, many Spanish companies are diversifying their investments abroad .
But even if one-third of Spanish private debt is tied up in assets overseas, then two thirds portion is mostly comprised of consumer credit and real estate loans, sectors subject to the continued deterioration of the Spanish property market, where complex inheritance laws have created barriers to sales and delayed a full correction in prices.
The storm clouds hanging over Spain’s private debt is growing, which would threaten banks with more losses and raise the risk of more bailouts and capital injections from the government.
even the unemployment and lack of proper salaries are causing people to move to other parts and leading to drainage of knowlege and skill
Discrepancies are in fact found on how to fix it, not on whether to do it. Some consider the origins of the crisis to lie in a lack of compliance with a set of essentially correct rules; others attribute the crisis to the deficient design of the single currency, with compliance issues of secondary importance.
i appreciate your comments. yes I agree Spain’s problems lie in high uneployment, especially for young people!
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