…’cause another housing bubble has burst:
The Spanish government is reportedly considering a rescue package to “refloat” the housing market and slow job losses in the construction sector, raising concerns over investor appetite for the country’s sovereign bonds.
It’s a familiar story:
…unemployment jumped 132,000 in January, the sharpest one-month rise in a decade. Car sales were down 12.7pc.
Just last summer, everything was looking pretty good:
Jean-Michel Six, Europe economist at Standard & Poor’s, said Spain is now clearly in the grip of a severe downturn. “House prices peaked in June and are now falling month on month. The construction sector is 12.6pc of GDP, the highest in Europe.”
And with credit tightening for debt-loaded Britons, demand is bound to be lower as well. Who’s in?