Wednesday, February 10, 2010

Spanish Mess

Paul Krugman has written a nice summary of how Spain has reached its current (poor) economic situation.

The comparison with Germany is also nice. We can definitely see all the rent income earned by Germans who invested in Spanish real estate. I bet that if we look at the UK we might see the same thing.

I wonder what will happen with the deficit as this rental income (due to smaller demand for real estate) goes down.

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