The party is over
Not so long ago I read the news that counted as a British student to swallow the key to your house to continue partying:
"Hab ed too drunk that night," says Foster, a student at the University of Bournemouth. "My friends told me I had to stop and return to my home, but I wanted to continue partying, so I swallowed the key blow to joke"
Hours later Foster began to feel pain in the stomach and throat, so he went to hospital, where he met the surprise of seeing an X-ray that the key, nearly 5 inches long, was in his stomach.
We may sound crazy, but in Spain we have done virtually the same thing, we wanted to prolong the party over what we should and we are recommending our friends, but we still had fun on as if it were nothing. That's as pointed out in The Country Today: The Feast of the waste has ended. In this case, for consolation for many, the rich are also noticing a lot of the crisis.
Jesus Hernandez is a senior Astondoa, one of the Spanish yacht builders of great length. The yacht felt the crisis, in particular, appears to lie though, the end of the housing bubble, because they stand out among those who buy yachts, the magnates of the brick. Its price will range from 300,000 to three million euros. "The halt of ladrillazo has been a stone for the segments cheaper ... and for the most expensive."
And article again on the idea of the "wealth effect" base of chaos in recent years.
Goodbye to the worn wealth effect that has sustained consumption in recent years. The American economist Milton Friedman said in late fifties that private consumption depends on household wealth. That concept of wealth includes the total household income, both current (headed by wage) as those collected in the future and the value of its assets (in Spain, led by housing). On the one hand, unemployment begins to loom on the horizon: less consumption. And for another, housing collapses: even less consumption. The researcher of the Bank of Spain Olympia Bover has estimated that an increase in the value of the home of 100 euros would lead to an increase in the consumption of the Spanish families of two euros (a much more modest than in the case of Anglo-Saxon families, by the way). This thesis explains perfectly the dramatic rise in consumption in recent years. The problem now is that housing falls. And the negative impact of that fall on consumption is much higher.
The El Pais article is recommended reading though here too long to paste its contents, so I stay with the final paragraph:
The sentence by the brilliant Scott Fitzgerald came to say that the rich "are different from you and me." The replica of Ernest Hemingway was very held in his day: "Yes, they have more money than us."
In dont have also finished the party is in Denmark, which becomes the first European country to declare officially in recession. As for Spain, we have t he details of the strike in which 36,849 people went up in June to 2,390,424 unemployed. This is the first rise in June in 12 years, so we are not worth the apology of "This is a month in which unemployment traditionally rises." From now on, I fear that each month will have the same tradition.
Faced with this wave of pessimism, there are still some who want war like that Caja Navarra
launches a fixed-rate mortgage at 5.81% APR and 40-year fixed term. No doubt an interesting offer when compared with those of the competition.
The offer from La Caixa, so far the cheapest with a 6% APR for 30 years, however, with an official opening of 1%. The fixed rate mortgage of Santander, has a price of 7.10% for 20 years, which provides for a Popular but anything longer, 30 years. So far no body had dared to shield the interest to 40 years.
It is often blames Spain for having opted for a variable rate mortgage, but given the offer we had was as normal.
Written by Carlos Lopez on July 2, 2008 with 290 comments
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