Well you asked for it and so ill respectfully assist.
Today we are looking at Spain. But lets see whether we can replace the word spain in many of the facts below and write the word Vancouver (well you are stars at being delusional.)
Well many of those points could be said about Vancouver.
A few days ago somebody said, "Vancouver prices wont fall unless there is another stock market crash".
Well what would cause another mealtdown? Greece? Maybe - maybe but just a nice little correction 5% maybe 10%. But itll just get everybody very nervous.
What will totally spook the market, aka overnight mealtdown Bear Sterns style would be Spain. 20% mealtdown
10x the size of Greece. But Spain will be Ok - surely I hear you say. Theyll fix all that. (Will they?)
Its only onwards and up from here. Nothing to worry about here. Buy the dip as they say.
Now is such a great time to buy real estate. So much stock on the market. 19,000 houses (approaching a record), interest rates are so low, they can only go up from here, and better get in before they tighten the mortgage rules. No need to worry about spain causing a problem in our bubble real estate market is there...... is there?Spain's economy is bankrupt. A veneer of freshly printed euros is all that's holding it together. Within a matter of weeks, more printing will be seen as crucial to prop up banks and sovereign debt.
Like a zombie in a horror movie, this is the crisis that just won't die. Spanish government bond yields are rising yet again, wiping out any "carry trade" profits that Spanish banks were hoping to generate by borrowing from the European Central Bank (ECB) at 1%.
The ECB's three-year long-term refinancing operation loans bought Europe a few short months of tranquillity. The Bank of Spain announced that during the month of March, Spanish bank borrowings from the ECB soared from €152 billion to €227 billion.
Spanish banks are in big trouble. They must pay out depositors looking to move to safer banks and foreign institutional lenders pulling money out of the country. The only place Spanish banks can turn to replace this lost funding is the ECB. Spanish banks have taken up 30% of the LTRO loans issued thus far.
Spanish banks are propping up the Spanish government by parking these loan proceeds in the bond market. But this is just temporary, and it makes the situation even more fragile by tying the fortunes of the government and the banks even closer together. Ultimately, the funds borrowed from the ECB must be used to satisfy deposits and bonds maturing later this year.
"Weaker lenders are merely parking the ECB's ultra-cheap funds in [Spanish government] bonds until they need the money to roll over their own debts," writes Ambrose Evans-Pritchard in his Telegraph column. "That is coming due since European banks have €600 billion in redemptions over the rest of the year. Many are now stuck with losses that they cannot afford to crystallize." Considering the turmoil we'll surely see in the Spanish economy, €600 billion in maturing debt is going to be a huge challenge for the European banks.
Source: Why Spain’s Economic Crisis Will Be Good for Gold
Lets see - buy Vancouver bubble property or buy gold.
You go buy the Vancouver bubble property, you know you want to. Sheeple never need to think for themselves.
Geezer: "What if somebody listened to Taipan and doesnt buy".
Well, they will thank their lucky stars, that they arent one of the thousands of miserable souls who cant sell their properties in 2013!