Saturday, March 2, 2013

Spain's "Terrible And Inhumane" Situation Prompts End To Evictions | ZeroHedge

Spain's "Terrible And Inhumane" Situation Prompts End To Evictions | ZeroHedge

Spanish Prime Minister Mariano Rajoy will temporarily halt evictions of the most vulnerable families as the government devises measures to help people stay in their homes after a woman killed herself in Baracaldo.

The Spanish people are experiencing “terrible things and inhumane situations,” the premier said at an election rally in Lerida, Catalonia last night. The government “will defend the most vulnerable families affected by the evictions and act with seriousness, sensitivity and great humanity,” he said.

Amaya Egana Chopitea, 53, threw herself from the window of her apartment when representatives of Spanish bank La Caixa arrived with locksmiths to evict her yesterday morning, El Mundo reported. Egana and her husband’s mortgage debt of 164,000 euros ($208,640) rose to 213,000 euros because of charges and interest payments, while their home had been auctioned for 190,000 euros, the newspaper said.

Rajoy is searching for a formula that can help families that have fallen behind on mortgage payments without increasing the strain on lenders trying to clean up about 180 billion euros of bad real estate assets, the legacy of a 10-year building boom. Banco Popular Espanol SA (POP) today offered shareholders the chance to buy new stock at a 32 percent discount as it tries to plug a 3.2 billion-euro capital deficit.

When countries become poor in a quasi depression they can collapse into Roy, then G public property can be more efficient. Foreclosing on homes to resell at a fraction of their value causes more bank bailouts, the problem is the Biv system is efficient only when resources are abundant. It is then better sometimes to nationalize some housing and banks, then privatize them again when the country returns to Biv prosperity. 

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