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Spain Declares 2-Year Moratorium on Evictions Following Suicides; Policy Will Blow Up Spectacularly

David4 Wrote: Nov 23, 2012 5:02 PM
Re. Spanish evictions: I wrote a scenario a few years ago. Mass failure to pay mortgages or other debt leads to bank failures. Bank failures in the old days meant depositors were wiped out, and lending stopped in the community. Bank failures in more recent days meant the FDIC had to make mass payments to depositors. Lending still stopped. Such mass FDIC payments would cause the FDIC to fail. Congress would have to enact a bailout. From this point on it's anyone's guess, except that borrowing would be hard to come by, and probably have a political component.

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...

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