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Oh this I know this I know.. becae I trust P. Solbes actually.

A freeze in the house market for adecade will be desirable/necessary.. prices increased too mcuh .way too much  and there was a bubble in the extreme growth of prices...with people investing in houses..

A certains ectr of thepopualtion have house that do not sell or rent or anything.. they have it as an ivnestment...(frm 3 to 10 flats typically)

So nobdy wants to touch it. upper middle class in Sain is based on these houses and they are powerful.

But balanced can be achieved if prices grow below inflation for 5-10 years... right now it is just too much for the middle class..

The amount of debt in mortgages is huge huge huge...

Plus investemnt in houses made other investments in spain (R+D) almost nill...

So hopefully we got it on time and we cool it on time....and ina nyc ase we cold happily sustain a 5% decrease in direct consuemr prices for a couple of years... probably it would be better... but the power to be does not want...

A pleasre

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Thu Nov 22nd, 2007 at 11:46:25 AM EST
[ Parent ]
I am beginning to lose my trust in Solbes because even though he knows the economic model is economically (let alone ecologically) unsustainable and he made some noises about using the strong GDP growth to shift to a more sustainable model, he's done nothing. Spain has had the same economic policy for 14 years and counting, as Solbes was minister in 1993-6 and Rato just continued the same economic and fiscal policy in 1996-2000.

We have met the enemy, and he is us — Pogo
by Migeru (migeru at eurotrib dot com) on Thu Nov 22nd, 2007 at 11:58:47 AM EST
[ Parent ]
I still trust him.. because he makes noises.. he can not changed the policy on housing.. it does not belong to him... he just makes enough saying that it is better to move away from housing... pushing slowly... all what econmic ministers an do there.

I like his fiscal policy... if I forget about the sustainability issue....

yes the fiscal policy sould have a deep cahnge towards taxing fuel, waste and so on and get rid of the taxes for workers... stil he has been the only one I know which increased taxes on cars wth more than averge fuel standartds and educe it fore fficeint cars.. so basically he implemented one of the points in energize america single handidly...

within the parameters we normally move he is OK....let's hope one day society/ecnomic sectors is open to move towards a change in fiscality...maybe when oil is at 500 $?

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Thu Nov 22nd, 2007 at 01:25:09 PM EST
[ Parent ]

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