Spanish Financial Crisis

Full Essay on Financial Crisis

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1.- Crisis in Spain The crisis in Spain is a financial crisis as other countries in the world, solely there are some price let the cat out of the bag in the turn sector. The creation of the bubble in the case of Spain was due to several factors: ? Arrival at the age of emancipation of the largest genesis in the Story of Spain ( the record of births in Spain was in 1975, it was called frustrate boom) Spanish population pyramid in two hundred7

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? To be instalment of the Euro Zone. In the past when Spain entered in a crisis, the peseta was corrupted and managed the situation in a short-term. ? Low interest judge in the European Union due to the crisis of Internet bubble in some European countries, Spain was fine ( this crisis did non hit too much) and it had to have increase the interest rates, but the authorities at that time did not do anything. This cause the wad borrowed more than they could afford because of low interest rates. All of these factors caused a speculative rise in the prise of housing, between the days there was a rise in the prices of more than 200%. With the rise of prices there were people who began to speculate, buying housing not for living if not to be able to resold it some days later
1 Geraldo, [ref. 20 August of 2010].



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for a price much higher. The court of building houses were much lower than the selling prices and that made meshing were very high, because of this, many companies entered in the construction industry. Housing construction reached 800.000 homes/ year, it was built more than in Italy, Germany and United Kingdom together. The map below proves it ( Housing began in Spain compared with other 10 countries):2

2 Geraldo, [ref. 20 August of 2010]. Available in web:

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