Go Back  British Expats > Living & Moving Abroad > Europe > Spain
Reload this Page >

Has Zapatero lost the plot?

Wikiposts

Has Zapatero lost the plot?

Thread Tools
 
Old Sep 26th 2009 | 9:31 pm
  #31  
Econ's Avatar
BE Enthusiast
 
Joined: Nov 2007
Posts: 773
From: Southern Spain
Econ has a reputation beyond reputeEcon has a reputation beyond reputeEcon has a reputation beyond reputeEcon has a reputation beyond reputeEcon has a reputation beyond reputeEcon has a reputation beyond reputeEcon has a reputation beyond reputeEcon has a reputation beyond reputeEcon has a reputation beyond reputeEcon has a reputation beyond reputeEcon has a reputation beyond repute
Default Re: Has Zapatero lost the plot?

Originally Posted by steviedeluxe
Surely if Germany and France are exceptions, then the Euro can't be blamed ! Surely it's down to an unsustainable house price boom fed by loosening of credit - started in the US but also followed by the UK, Ireland, Spain etc. I'm sure you can make claims that the standard Euro currency makes it difficult to make an escape via currency devaluation or hyper-inflation, but I'm not sure at the moment that UK's escape plan that way is the best option (we shall see)! I think Germany (and to a lesser extent France) escaped the worst effects of the house price boom, which is possibly why they're in a good situation to come out of this mess, plus they still make things. End of the day we've all kidded ourselves in the West that we're getting richer because the value of our houses has shot up through the credit-induced boom. In reality most of the productive stuff has been heading out east. We can either decide to let house prices fall back to the long-term average value (as will happen in Spain) or devalue the currency so the net effect is the same (UK). At least we can still sell financial products, English classes and Real Madrid shirts to claw back some earnings, but it isn't going to be enough to keep our populations in 100% work.
The problem is Spain is much greater because it was a very, very cheap country before the Euro came in 'massive difference in prices comparing then to now and it is not that long ago', much cheaper than France, Germany etc., prices shot up '66% overnight in some cases' and up as people from outside Spain 'and the Spanish' kept paying them... so middle men for example just kept putting their cuts up in a manner that could be classed as 'out of control' because there was so much demand and they are 'in the South anyway in general greedy businessmen. In fact I remember demonstrations in Barcelona where the growers actually drove their produce into the cities and gave it away free to bring attention to the fact that they where not being paid any more 'in fact in many cases less' while prices on the outlets where soaring 2 and 3 fold.
The reason most of the Spanish paid the prices was because there was a lot (and there still is) of black money in the economy but many Spanish have 'always' been complaining of the rise in living costs here, people who work in hostaleria and many stores where still on a low wage, generally it was the fact that there are two wages coming in that kept their heads above water and gave them a bit more spending... so now we have a very expensive county 'compaired to a very few years ago' and a population on very low wages 'many in the south still on 600 and 700 Euros a month'.

Now you have a population where most people are feeling the pinch and prices are still going up and taxes of course with more to come, as I have also mentioned before here I think the Spanish have seen nothing yet 'or very little', the big problems will really start kicking in now this winter, this is when people like Zappatero who keep saying the recession in Spain has had it's worst will be eating their words as they seem to be doing a lot of late.

BTW, many companies in Spain pay a wage and then a 'back hander', this is basically to save the company money because they pay less tax. This was and is still a normal practice in Spain, not something that a government offical would *not* know because it is just that... 'Normal practice here' that everyone who is Spanish or who has integrated into Spanish society knows about. I doubt there is any Supermarket chain or department store group that have changed this practice and the government know it, these places are saving massive amounts of money from this practice but the government don't do anything, they pick on the small companies and on individuals... either because they are scared to go there or because they have a vested interest in leaving them alone, I personally think they are scared to go there.

Oh and no, Zapatero hasn't lost the plot, he actually never knew there was one in the first place...

Last edited by Econ; Sep 26th 2009 at 9:33 pm.
 

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Your Privacy Choices

Copyright © 2026 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.