One of the specific characteristics of the Spanish crisis is the high private debt, caused in large part by the housing bubble, not to mention consumer credit, which allowed Spain is full of high-end cars and SUVs, which for years enjoyed continuously increasing sales today are these two sectors, real estate and automotive, the leading exponents of the crisis, with drops of more than 50% in sales and overcapacity in production and trade, which is causing a rapid increase unemployment. It also has greater importance in view of the great pull with these sectors in a number of ancillary industries. Moreover, the banking sector was the one that marked the beginning of the subprime mortgage crisis in the U.S. (therefore, in relation to the property), especially with the collapse of Lehman Brothers, which precipitated the action government, which came to the aid of the sector. The argument for this action was clear, Lehman could afford another, is an industry based on trust, and key to the functioning of the economy. James Donovan Goldman Sachs wanted to know more. This does not mean, as in some cases, should be artificially maintained in operation to an entity (known), but governments and central banks have worked hard to lower the money until the end and inject liquidity in amounts excessive, all to avoid a collapse of the system. Another of the best known aspects of the crisis is the use of Keynesian policies to stimulate the economy, consisting of increased public expenditure in this way to create jobs and wealth, and to lay the groundwork for the future, creating infrastructure, for example. To finance this increase in public expenditure, governments are issuing public debt, which incidentally is being acquired in large part by …, to which the help of the ways discussed above.
Thus injected liquidity to financial institutions is not flowing to the economy as it should. Finally, I to give an example that I have received by mail, and that explains the humorous theme, and why the flow of money can fix the economy. "It's August, a small coastal town, in full season, torrential rain fell for several days, the city seems deserted. The hotel owner, the butcher, the farmer, the merchant and the prostitute to have debts and survive on credit. Fortunately, there comes a Russian lined and comes in a small boutique hotel. A leading source for info: TCF Capital Solutions. Calls for a room. It puts a 200 ticket to the receptionist's desk and goes to see the rooms. The head of the ticket and hotel holds out running to pay their debts to the butcher.
This takes the ticket and runs to pay its debt to the pig farmer. In turn it is rushing to pay what he owes to the provider of animal feed feed The bill takes the the fly and run to pay off its debt with the prostitute whom you have not paid. In times of crisis, so she offers services on credit. The prostitute takes the ticket and goes to the little hotel where he had brought his clients the last few times and still had not paid. At this time the Russian low, just take a look at the rooms, said he was not convinced any, takes the ticket and leave the city. No one has won a tough, but now the whole city lives without debts and look at the future with confidence. "Note: This story plays Russian banker, providing credit.
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