Banks and finally are realizing that there is only a solution to all these homes that are entrenched in their balance sheets. Homes that have been accepted as payment of bad debts primarily by developers.
output, as shown in the news , is none other than a sharp drop in housing prices. The reason is that other measures have not worked, among which we can highlight the increase in VAT by mid-year and end of the home purchase tax credit for the end of 2010.
If not applicable to a significant drop in housing prices, they will stay in banks and savings banks, and Spain will sink into a depression chronified to the Japanese, with a lost economic decade. And just the experience of what happened in Japan has shown that this scenario must be avoided at all costs, and they think banks and building.
not forget that English banks and savings banks in turn have some debts with other entities worldwide. These debts to be refinanced periodically, and for this to be possible it is necessary that the English financial system is showing solid and healthy future. For this to be English and the economic environment must be to turn and future growth prospects. Quite the opposite of what is a depression in the Japanese as a solution to the housing bubble.
