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Spanish real-estate bubble has bursted

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posted on Apr, 24 2007 @ 06:07 AM
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Spanish real-estate bubble has bursted


www.bloomberg.com

April 24 (Bloomberg) -- Spanish stocks tumbled after a plunge in real-estate developers fueled concern the nation's property boom is imploding and will hurt builders and banks.

Astroc Mediterraneo SA, a developer based in Valencia, led the decline. Grupo Inmocaral SA, Spain's second-largest real- estate company, and Banco Bilbao Vizcaya Argentaria SA, the country's second-biggest bank, also slumped.

``This is the burst of the Spanish real-estate bubble,'' said Alberto Espelosin, a strategist at Zaragoza, Spain-based Ibercaja Gestion, which manages about $7 billion. ``Banks are exposed and have risk.''
(visit the link for the full news article)



posted on Apr, 24 2007 @ 06:07 AM
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Fears of a Spanish real-estate bubble burst first became public in 2004 when the British press started to get worried about the real-estate bubble of Europe. What is more worrying, is that the French bubble is set to burst too.

Again, the fears of the US housing market have spread like wild fire in Western Europe. The United Kingdom is also bracing itself for a housing market crash.

What is more worrying is how this is not be reported by the media. This should be alarming news.

www.bloomberg.com
(visit the link for the full news article)



posted on Apr, 24 2007 @ 06:21 AM
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I hope this doesn't happen anytime in the year, i've put all my money and savings into restoring a large victorian town house on the English coast. I won't be ready for market for another 4 months.

I've been watching the market closely, this was going to be my last property before chilling out for a few years.

I'm a little but nervous at this development i must admit....



posted on Apr, 24 2007 @ 06:28 AM
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with growing inflation in the UK and another two interest rate hikes coming, its going to get shakey.

plus, the drama in the US housing market isn't over. i've been keeping an eye on it and its still looking bad.

Subprime Bondholders May Lose $75 Billion in U.S. Housing Slump





April 24 (Bloomberg) -- Bond investors who financed the U.S. housing boom are starting to pay the price for slumping home values and record delinquencies in subprime loans.

They will lose as much as $75 billion on securities made up of millions of mortgages to people with poor credit, says Pacific Investment Management Co., manager of the world's biggest bond fund. Some of the $450 billion in subprime mortgage-backed debt sold last year has lost 37 percent, according to Merrill Lynch & Co.


Please visit the link provided for the complete story.


Bloomberg



posted on Apr, 24 2007 @ 07:37 AM
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Subprime Mortgage Bond Losses to Grow





Losses for 2006 subprime mortgage bonds are likely to be bigger than previously estimated, Moody's Investors Service said in a report.

On Friday, the credit agency said the new anticipated range for cumulative losses over the lives of 2006 subprime bonds is 6 percent to 8 percent, up from last year's estimated loss range of 5.5 percent to 6 percent.

The average life of a subprime bond is three years. As many subprime borrowers will soon face higher interest rates at the end of their initial fixed rate periods, many of them might be unable to afford the higher mortgage payments, leading to further increases in delinquencies.


Please visit the link provided for the complete story.


www.forbes.com...

The Spanish stock market is down 2%, due to the housing market dragging it down. We will have to see if the Spanish bubble burst spreads out, maybe to even the French housing market.

If the US housing market gets more shakey, then the European bubble will probably burst.

[edit on 24-4-2007 by infinite]



posted on Apr, 24 2007 @ 05:07 PM
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U.S. Economy: Home Sales and Consumer Confidence Drop





April 24 (Bloomberg) -- Sales of previously owned homes fell to the lowest level in almost four years and declining prices hurt consumer confidence this month, indicating the U.S. economy is struggling to pick up following a first-quarter slowdown.

Existing home sales slid 8.4 percent in March after rising 3.7 percent the previous month, the National Association of Realtors said today in Washington. A separate private report showed home-price declines in 20 major cities accelerated in February. The Conference Board's consumer confidence index fell to 104, from 108.2.


Please visit the link provided for the complete story.


Bloomberg



posted on Apr, 24 2007 @ 05:11 PM
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what we have to understand with Spain is this,

the fear of Europe is that this is going to spread. The modern market is quite connected in Europe (and world wide for that matter). Some experts see the potential for this development in Spain to result in a decline across Europe.

I have posted other news stories regarding the US, this is a subject that ISN'T TO BE IGNORED.



posted on Apr, 24 2007 @ 05:13 PM
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I had no idea this was happening in Spain, and I have family there too.

I guess the economies in several countries are not doing so good.

I agree with you infinite, I am going to try to see if I can talk to my family over there and see what they tell me. This is news to me. I haven't talked to my family in Spain for a long time.

[edit on 24-4-2007 by Muaddib]



posted on Apr, 24 2007 @ 05:16 PM
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Global economic crash will be this year or next year, it's planned that way, thanks to the elite. Then we can form the North American Union, then what... a world war to restart everything? With Bush in commands during what will be the biggest economic crash in history, the US is farked.

The only way to save the USA would be a revolution then there's a thing that exists, I think it's called non-letimate debt... it's when a dictator is in control of a country and spend like hell... then the debt is illegitimate and is cancelled....

[edit on 24-4-2007 by Vitchilo]



posted on Apr, 24 2007 @ 05:22 PM
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Reading the article apparently this started in Valencia, which is one province in Spain which borders in the Mediterranean. It might take a bit for this to affect more the capital of Spain Madrid, although the article says that the Madrid Stock Exchange declined 2% and in Portugal the decline was 0.3%. Lets hope they can stop this before it affects more the markets and people.

[edit on 24-4-2007 by Muaddib]



posted on Apr, 25 2007 @ 08:29 AM
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Euro helps topple Spanish property





Fears of a property crash swept the Spanish stock market yesterday, sending shares of construction companies into free-fall, and hitting banks exposed to the mortgage market.

Spain's biggest property group, Sacyr, fell 8.15pc, while developers Colonial and Inmocaral plunged over 11pc.

Valencia builder Astroc first set off alarm bells last week after the regional junta changed planning laws. Its shares have since fallen 62pc, but there appears to be no obvious trigger for the sudden switch from euphoria to panic on the Madrid bourse.


Please visit the link provided for the complete story.


Telegraph





posted on Apr, 27 2007 @ 08:31 AM
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U.K. Home Prices Are `Very Inflated,' Tchenguiz Says (Update1)





By Peter Woodifield and Francine Lacqua

April 27 (Bloomberg) -- U.K. home prices, rising at the fastest pace in two years, are ``very highly inflated'' and at risk of collapsing, said Vincent Tchenguiz, one of Britain's largest residential property owners.

A shortage of housing has driven the price of an average home up 11 percent over the past year, according to HBOS Plc, the U.K.'s largest mortgage lender, even after the Bank of England raised its benchmark interest rate three times to a 5 1/2-year high.


Please visit the link provided for the complete story.




``It is not sustainable in the long term, prices are very high,'' Tchenguiz, 50, said in an interview. ``The bubble could burst in the event of a financial shock or terrorism.''


Bloomberg



posted on May, 3 2007 @ 01:23 PM
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Ekkk!!

Sub-prime mortgage crisis hits GM





General Motors has become the latest victim of the US sub-prime mortgage lending crisis.

Its GMAC finance arm made a loss of $305m (£152m) in the first three months of the year because of charges taken at its housing finance unit.

GM sold 51% of GMAC to a group led by Cerberus Capital Management last year.

GMAC's losses offset improvements at GM's automotive operations, leaving three month net profits at $62m, down from $602m in the same period of 2006.


Please visit the link provided for the complete story.


news.bbc.co.uk...

Very bad news



posted on May, 3 2007 @ 04:18 PM
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When the UK economy blows up they will adopt the euro, that's for sure. Then the US economy will blow up, leading to the Amero... then Euro will compete with the Amero... it will be highly volatile, so they'll take the decision to get a common currency.. then they'll do the same with the asian currency... then world currency...



posted on May, 3 2007 @ 09:19 PM
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Spain has had a huge problem with corruption in planning departments which has seen a lot of people lose a lot of money.

There is a massive shortage of housing in the UK which in turn will keep the house prices up, as demand is far higher than supply.

The UK economy has done very well when there has been a recession in the rest of Europe and the USA.



posted on May, 4 2007 @ 03:23 AM
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I haven't been able to communicate with anyone of my family in spain yet.

Are there any members from Spain that can give us an update?




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