An interesting article by Max Hastings:
Sadly I believe he is correct!!
An interesting calculation in support of his article:
Supposedly there are one and a half million new "homes" to be sold in Spain. These are in various stages of completion.
They are all empty. Many of them are physically depreciating the same way as "sub-prime" homes depreciated in the US.
Many of them will be knocked down at an additional cost!
Say the average bank loan to a developer was one hundred thousand euro per home.
Would some suitably qualified reader please explain to me how the one and a half million one hundred thousand euro loans (e1,500,000,000,000) is/should be shown on the lenders' balance sheets?
And that is just Spain!