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Well, I found some similarities between both crisis, especially in construction sector that has been severely damaged in Spain booming jobless across the nation. Also unemployment raised in United States since 2008 with a peak in 2010 of 9.8% whilst in Spain our peak was in 2013 with a painful-shameful 26.1%.
According to trading economics, the unemployment rate in United States by december 2016 was 4.6% whilst in Spain in september 2016 was 18.91%. At first we have been told that US crisis was one of the causes of spanish crisis, then some years later politicians recognized we have a deep national crisis but I wonder in what extent the US crisis affected spanish crisis?
The US credit crisis became a global crisis because many banks outside the US had participated in the spread of exotic and shaky derivatives. So if Spanish banks owned or had created any of these derivatives, yes they would have suffered also. But more than that is the US economy ground to a halt and that dragged down a lot of other countries that exported products to the US (or imported from the US). It is hard to have a major economy like the US's stumble without affecting many other countries.
If Spain had a fragile economy at that time it could be that the US crisis simply put Spain's over the edge. I am not familiar enough with your economy to say whether this was the case.
Well, I found some similarities between both crisis, especially in construction sector that has been severely damaged in Spain booming jobless across the nation. Also unemployment raised in United States since 2008 with a peak in 2010 of 9.8% whilst in Spain our peak was in 2013 with a painful-shameful 26.1%.
According to trading economics, the unemployment rate in United States by december 2016 was 4.6% whilst in Spain in september 2016 was 18.91%. At first we have been told that US crisis was one of the causes of spanish crisis, then some years later politicians recognized we have a deep national crisis but I wonder in what extent the US crisis affected spanish crisis?
People like to blame others for their problems and the USA gets blamed for a myriad of things that occasionally we deserve. In the case of the banks and financial institutions, the US crash was a tipping point for other banks and financial institutions including Spain. Spain, like some of our cities and states were too dependent on construction to drive the economy and construction is notorious for boom and bust. Spain needs more diversification which I believe they are well on their way to doing. I bought property in the Costa del Sol when he prices fell and it now is appreciating.
Well, I found some similarities between both crisis, especially in construction sector that has been severely damaged in Spain booming jobless across the nation. Also unemployment raised in United States since 2008 with a peak in 2010 of 9.8% whilst in Spain our peak was in 2013 with a painful-shameful 26.1%.
According to trading economics, the unemployment rate in United States by december 2016 was 4.6% whilst in Spain in september 2016 was 18.91%. At first we have been told that US crisis was one of the causes of spanish crisis, then some years later politicians recognized we have a deep national crisis but I wonder in what extent the US crisis affected spanish crisis?
Yes, of course it was very similar. The global banking cartel pushed crazy loans in as many countries as they could get away with. Not only in the U.S. and Spain, but also in the U.K. and Ireland, too.
But when the central bank delays the increase on Interest Rates, due to government presures to do so then the housing market starts to inflate its bouble by increasing its prices above the increase of the income of the buyers. This is when you are creating an explosive condition where Builders build more houses expecting better prices and better returns, but the amount of people wanting to take advantage of low interest rates decreases since the prices have increases above their possibilities. That is when the Demand stops and the new houses find no consumers but the capital invested on them stills cost but is not returning. then the prices lower but when the Price lowers it already own some interests and the real profit diminishes, in the very momento when the interest owned and the Price decrease touches the cero profit that is when the builder enters in red numbers panic can cause to decrease Price even more to recover at least some money and reduce the liabilities with Banks. Somehow it is not necesary to build more houses and thus builders fire many workers and their salaries not any longer circulate through the economy cousing a depresión wich will cause more firing elsewhere in other sectors of the economy then many Mortgage owners who lose their Jobs begin panicking, they may become homeless. The second ones to go panic are the bankers when thousands of Mortgages are gone and the Banks began to cummulate houses which can't be sold.
The Core thing to Avoid from central Banks is Inflation, and they MUST be free to increase Interest Rates to Reduce housing Bubbles.
Well, I found some similarities between both crisis, especially in construction sector that has been severely damaged in Spain booming jobless across the nation. Also unemployment raised in United States since 2008 with a peak in 2010 of 9.8% whilst in Spain our peak was in 2013 with a painful-shameful 26.1%.
According to trading economics, the unemployment rate in United States by december 2016 was 4.6% whilst in Spain in september 2016 was 18.91%. At first we have been told that US crisis was one of the causes of spanish crisis, then some years later politicians recognized we have a deep national crisis but I wonder in what extent the US crisis affected spanish crisis?
"Affected" yes, "caused" no.
The global credit crisis started in earnest in 2006 when asset price increases in the US started to plateau. What happened afterwards until 2011 was an implosion of credit that took down many houses of cards and then went after those with solid credit positions.
Spain in 2000-2004 boomed like mad largely from a massive influx of credit, most of which poured into infrastructure and real estate following adoption of the Euro. During this period, organic Spanish industrial formation really did not change much. Employment that soared during this credit boom were in jobs that relied more on the expansion of credit that from hard money earned from overseas, such as exportation of value added Spanish goods.
The collapse of US credit began to drain credit away from other boomlets. That credit quickly left places where the roots were superficial and stayed longest and returned most quickly in those countries who productivity gains had traction. Spain and Greece saw that money flow back out and not return in sufficient numbers.
The Spanish crisis was and is a national crisis. No credible economist would argue otherwise. The US is only background. If you are really interested in this topic, explore the period from the mid 1990s (the last years of the peseta), the credit boom through to the end of the Aznar years, and the policies in the first few years of the Zapatero administration.
The seeds of destruction are ALWAYS sown during the good times.
S.
P.S. BTW, chemE--a great major...
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