Skip to comments.Spain Declares 2-Year Moratorium on Evictions Following Suicides; Policy Will Blow Up Spectacularly
Posted on 11/12/2012 7:00:17 AM PST by Kaslin
El Pais (via Google translate) reports Government will give a two-year moratorium to end evictions.
Social pressure, political and, above all, the shock of facts so overwhelming as two suicides in recent weeks, the second on Friday, has led the government and the PSOE to move faster. Both contacts for accelerated progress towards an agreement to halt evictions more extreme than in any case, will not materialize until next week. That agreement, however, will not be retroactive and would apply to mortgages signed, but not those that are in foreclosure. It would not serve to cases like Egaña Amaya, the woman who committed suicide in Barakaldo.
The Prime Minister, Mariano Rajoy, solemnized the idea during an election rally in Lleida: "These days we see terrible things, inhuman situations, a person committed suicide when she would be evicted. It is a difficult subject, you have to take it with all seriousness and humanity. The government is talking to many people, we talked this morning with the PSOE. I hope we can talk on Monday of the temporary cessation of evictions affecting the most vulnerable families. And the threshold of exclusion, to better implement the code of good practice, so you can renegotiate the debt and remain in housing. It is a difficult subject, I hope we can give good news to the whole of the Spanish."
One thing sure to raise my ire is a group of mindless hypocrites who say one thing and do another, while pretending they have a clue. In this case I am talking about the IMF.
As part of the Troika, the IMF helped ruin Greece. The country is now in a never ending depression with the youth jobless rate at 58 percent, and overall unemployment at 25.4%. Every step of the way the IMF demanded more austerity measures, as did the ECB, EU, and Germany.
And every step of the way Greece spiraled further and further behind. It's not that austerity was unneeded, rather austerity could only really work in conjunction with a eurozone exit and work rule reform.
The IMF has lowered economic forecasts on Greece too many times to count. What was a €40 billion problem several years ago when I urged Greece to default is now a €240 billion problem.
Yes, the Troika threw €200 billion at a €40 billion problem. The reason is stubborn arrogance coupled with what amounts to religious fanaticism to save the euro project no matter who is destroyed in the process.
Eventually there is going to be a €240 billion haircut when Greece comes to its senses, tells the Troika to go to hell, and defaults on the entire mess.
IMF Hypocrites Urge Permanent US Can Kicking, Fiscal Stimulus, Enormous Deficits
While preaching round after round of austerity for Greece, Spain, Portugal, and Ireland, austerity is the last thing the IMF wants for the US.
Please consider IMF urges permanent fix to U.S. 'fiscal cliff'
The International Monetary Fund on Thursday urged the United States to quickly reach an agreement on a permanent fix to avoid automatic tax hikes and spending cuts early next year, saying a stop-gap solution could be harmful to the global economy.For some reason it is OK for the US to run trillion dollar deficits year after year but no one else. Yes indeed, the IMF is literally asking the US to spend the world out of recession.
In a report prepared for the Group of 20 finance ministers' meeting in Mexico on November 4-5 and published on Thursday, the IMF warned that the euro zone crisis and the threat of a political impasse in Washington over the looming fiscal cliff posed the biggest risks to the world economy.
The IMF has estimated that the tax increases and spending cuts amount to $700 billion in 2013. Unless avoided, this could contract U.S. gross domestic product by around 4.5 percent.
"A last-minute deal that relies on suboptimal fixes or largely 'kicks the can down the road' may ultimately prove harmful," the IMF said in the report.
Greek unemployment rose to 25.4pc in August. Youth unemployment rose to 58pc.Religious zealots (religion being the almighty euro project), have destroyed Greece to save the project. They will destroy, Spain, Portugal, and Italy as well.
Under the official forecast, the economy will contract by a further 4.5pc next year, so it fair to assume that lots more people are going to lose their jobs. It is certainly not going to improve in any meaningful way for years to come.
This is what happens when you lock into the wrong currency and block the escape routes or join a "burning building with no exits" in the words of William Hague.
Even if the EMU machine succeeds in keeping Greece in the system, is this any longer a remotely desirable goal? Has it not become a vicious and immoral policy in itself?
Premier Antonis Samaras issued hysterical warnings before the vote of what would happen if parliament refused to obey the EU-IMF Troika, talking of catastrophe and a collapse of Greek society.
The ideologues running monetary union cannot bring themselves to contemplate any step back in the Project, just as they would not admit yesterday in the Commissions economic report that they have gravely misjudged the effects of fiscal tightening (the fiscal multiplier) and have therefore miscrafted their entire austerity strategy.
We are not dealing with rational people. We are dealing with a religious order, and these monks are becoming an increasing danger to Europes societies and democracies.
Bad headline writing.
Apparently I'm supposed to believe that they won't evict you after you kill yourself.
So the result will be free housing for all in Spain for two years. This will require an even bigger bailout which will have to be paid by Germany. When will the music stop?
“The problem with an eviction moratorium should be obvious. People will have no incentive to pay their mortgages for the next two years.”
One more problem with that: there will be no incentive to rent to anyone. Meanwhile, the landlord still has to pay taxes, make repairs, and perhaps make mortgage payments on the property.
lets see, taxes will rise....
spending will be cut..
who will be the biggest losers?
The lower class, who will see their rates go from about 5% to 10%..
effectively the lower class will see their tax rates double..
the lower class voted overwhelmingly for fubo..
let them eat cake..
So what will be their plan a year from now when broke landlords begin committing suicide?
Who needs a lease. Just move in and change the locks.
What do you not understand about "free stuff"?
all current renters will now stop paying their rent.
all landlords with vacant property will now refuse to lease it.
The real estate market will now be swamped with landlords desperately trying to unload rental properties that are now worthless.
The whole real estate market will collapse, and send the economy into a depression.
Thanks Socialists! /s
“The real estate market will now be swamped with landlords desperately trying to unload rental properties that are now worthless.”
Not to mention no one in their right mind would be lending money for new mortgages since they can expect to NOT got paid back! So those properties can’t be sold. So, property owners now go bankrupt, and the lending banks then go bankrupt. That’s what happens when people can borrow money and are told it’s ok to not pay it back.
“The whole real estate market will collapse, and send the economy into a depression.”
Spain is already in a recession due the collapse of the real estate market. A further, final, complete collapse would indeed push it into depression.
Why not just declare a moratorium on suicides?
“Just until we get back on our feet!”
And if landowners start commiting suicide, will the idiots change the law back to what it was?
Of course not. This is not about preventing suicides. It’s about using the suicides as an excuse to do away with the one thing that leftists really HATE: private property.
Tough times in Spain.
Unlike in the US, you cannot simply walk away from an underwater mortgage. You’ll lose the property, and the bank will continue to go after you until the day you die. No bankruptcy discharge.
Bingo. Coming to a town near you in the good ‘ol US of A.
Why not a moratorium on suicides, that would be just as effective.
“A further, final, complete collapse would indeed push it into depression.”
“General Franco, please pick up the white courtesy phone.”
"Miss me yet?"
Small investors will not be able to keep their rental properties when they cannot evict. Who will end up with all the property? The 1% who can sustain debt. They will be buying up real estate at pennies on the dollar. What have they accomplished except to hurt to poor?
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