Our virtual adhoc tour of economic disaster zones brings us to Spain today.
Watch this video of a Spanish ghost town (h/t @izakaminska), ironically named "Ciudad Fantasma". It is definitely a good indicator for the challenges Spain faces. This is the result of a decade of low interest rates and banks willing to finance every building project without many questions asked. According to Spanish realtor Tinsa prices fell 4.5% in the last 12 months to February and there is no end of the decline in view.
VIDEO: Ciudad Fantasma is only one of countless ghost communities that litter Spain and will become the ruins of modern times.The video above is from 2009.
Here is one from September 2010.
Follow this link to see a Spanish TV broadcast from last January, interviewing some of the few residents.
In February the Bank of Spain said that while total exposure of Spanish savings banks to real estate and building is about €217 billion, €100 billion euros is classed as “potentially problematic.”