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Euro crisis: Now Spain struggles

The Euro is not yet about to come to a rest as it seems. Now Spain has shown
signs that their biggest bank “Bankia” is in need of approximately 20 billion
Euros to haul all the desolate hypothecary credits it has issued in the past.
On the other hand: Thousands of angry “home owners” who will loose home.

The situation could not be more difficult it seems. But when Spain fails, the whole Euro will fail. Spain is “too big to fail”. So what is the rest of the european community about to do. The fact is, that not only Spain is about to struggle. Also Portugal seems to have severe financial problems ongoing and they’re not able to solve them alone.

Drastic financial cutbacks in the public services led to protests and laydowns of work. The result: Dirty public buildings and other offline public structures. It’s like a twirk of fate sucking in all the money of our financial system. But whatever solution there might be. They all have their advantages and disadvantages…

Socialism and Communism: Everyone has all the things he/she needs to live. Prosperity however is lacking due to fixed standards the Politics have issued.

Capitalism: Free economic business allows a wide variety of products available to the public. The price is individually defined and every company can release their products without big restrictions. Stock markets however seem to put pressure on this system although there’s big money for the companies issuing the stocks. This however leads into big financial problems if the stock owners begin to become unhappy with the company’s development. The next factor is the finance which is also based on credit and loans. They of course accelerate the consumation of goods but the increasing loan interest rates may quickly become to a serious problem for those who do not earn enough money. You can see this perfectly in the home owner’s section where hypothecary credits become a big problem and became in 2008 in the USA for example. hundreds of thousands have lost their homes and the banks’ financial flows have been put on hiatus as home owners were no longer able to serve their loans, let alone the down payments or interest rates.

So in conlusion it seems as if the best thing would be to get back on the status where you exchange goods for goods but this is not possible in today’s modern times. How do you reward cell network access today? Or electrical Power. Or Water? Things to think about.

So all in all, the situation won’t come good. unless the ultimative economic solution will come up.

And currently the spanish people only say: ¡La mierda se està cucinando!

May 31, 2012 Netspark - 1588 posts - Member since: May 9th, 2011 No Comments »

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