..financed by capital outflows from Germany.
This is BS, isn't it? Did german property speculators inflate spanish housing market??
..If Spain had its own currency, this would be a good time to devalue; ..what's happening to Spain reflects the inherent problems with the euro,
The problem is not the property bubble, it is euro??
This is BS, isn't it?
To an extent. But if you want to run a trade surplus for an extended period you'll have to either buy up your trade partners' property or lend them money. A possible German bailout of Greece or another peripheral economy would quite likely be a bailout of domestic interests.
Atlas der Außenhandelsstatistik
Handelsbilanzsaldo insgesamt 2008 in Mio EUR HandelspartnerWert Frankreich30288 Vereinigtes Königreich22510 Spanien21975
