Spain Was a Warning

[@EconomicsExplained]

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[@makisekurisu4674]

Housing as an investment is a bad idea for everybody.

[@Kaelthas93]

12:37 there is something off with the timeline on that graph.

[@Julleisa]

You really should learn to speak a littlebit slower. You sound stressed.

[@DavidYoung81]

@@Julleisa He probably has property in Spain

[@slipstick985]

@@Julleisa Ausies don't have time. They have a continent to tame.

[@DataIsBeautifulOfficial]

Spain's out here topping charts with both high life expectancy and unemployment. Kinda makes you wonder if there's a link, huh?

[@Archikuus]

I mean, its only a year or two above germany

[@CloudTribe]

The true nature of capitalism of the wealthy elderly who will consume the futures of the youth to extend there own livelihood

[@Davoodoox1]

@@CloudTribe Sounds like you have plans for moving to russia? Good luck we will not miss you commie.

[@tempoaccla4041]

nah it's the food and unemployment has affected young people the most

[@lost_porkchop]

Their unemployment is not the same as North American unemployment. That's why it's always incomprehensibly high.

[@User9r682]

If there's one thing I know about economics its that investor caution goes out the window as soon as something "new" comes along because they're all too busy trying to get rich before it all falls over.

[@jstn8785]

aka AI

[@Davoodoox1]

@@jstn8785 Suddenly i realize it is a long time since i heard the word AI.

[@jstn8785]

@@Davoodoox1 still going strong, unfortunately

[@evancombs5159]

This is why even as a libertarian I still believe there should be heavy regulations on financial institutions. There is too much risk to allow those greedy fools to just do whatever they want.

[@marrs1013]

Because they know it's a bubble. They have to jump in earlier the better, so they gain enough to survive the crunch with a little extra. Then they can buy up the competition that didn't make it. Growing above everything. Cancer.

[@ticketforlife2103]

So in short. Housing should not be an investment and treated like spiculative stocks.

[@nunyabidness3075]

Homes are always and will always be investments. Your utopian/dystopian fantasies are not workable. The reality is all over the video. Free lunch government trickery just creates waste.

[@Almirante1741]

People must have the right to do whatever they want with their money.

[@jonova3187]

@@Almirante1741 housing should be seen as a public good. With your mentality they will be selling us air. It's inhumane with the level of homelessness going on.

[@conradbo1]

That is actually very true now that you mention it.

[@KirillTheBeast]

Housing is a necessity, not a commodity. As a spaniard living in the least accessible city in the entire country (Barcelona), I can confirm this shit's out of hand. Short term rentals have now stacked up on top of everything else and now there are entire neighbourhoods in which people can't afford to rent an apartment, yet whole buildings are vacant because nobody wants to live next to an AirBnB. Barcelona is now like Los Angeles; most people working here can't afford rent. We've got people having to commute 15-35 km to work because a salary here is barely enough to afford rent two comarcas (shire or county) over.

[@JessieBanana]

Unfortunately, “we” are not in a position to learn anything. The people who make these short sighted gains do not care, it’s not ignorance. The rest of us normal people are just pawns in their game.

[@KamikazeCommie501]

That's what happens when you exist in an economic system that only incentivizes greed, one of humanities worst traits.

[@misspat7555]

@@KamikazeCommie501Greed will always be incentivized. It always has been. The Bible speaks about this at length, including in portions of the Old Testament written a good 3,000 years ago. The battle to keep people from becoming whatever their generation’s version of billionaires is at the expense of others’ lives will never end. It’s a battle worth fighting, though! 😤

[@palemoonsovereign4142]

​@@misspat7555 you don't seem to know what the word "incentivized" means

[@AdNecrias]

​@@misspat7555 The bible you read in English has been translated to do more emphasis on that. Even a lot of expressions were changed to better fit English culture's values, and money is one of them. Not that it's non existant, but whoever is greedy has an advantage to those who share with everyone, even those who keep all to themselves. So in the end what's left is people who are greedy, at least a bit.

[@Ben_of_Milam_Music]

@@AdNecrias the sin of greed is essentially the idea of "I can never have enough." It doesn't matter what the thing is that you greed after, it's just the inability to be satisfied with what you have. The concept of sin is more accurately thought of as character flaws or personal failings, imo. But there still is a wound that opens on your soul when you sin (and through Christ's forgiveness you are able to close those wounds). Multi-millionaires and billionaires destabilizing entire economies for miniscule profits, despite already being wealthy enough for them and their families to live comfortably for the rest of their natural lives. That? That's greed.

[@EstherRoss-gm8qv]

The global economy is in quite a state right now. We've got inflation, supply chain issues, and geopolitical tensions all playing a role.

[@OwenFlex]

Yeah, it’s affecting everyone. Prices are going up, and it's harder to get some products. It's really shaking things up.

[@MichealMadu-vp7ll]

And with central banks raising interest rates to combat inflation, borrowing costs are increasing too, which impacts both consumers and businesses.

[@JasonAmir-qo4uo]

It's a tough situation. Higher interest rates mean higher mortgage and loan payments, which can slow down spending and investment.

[@OwenFlex]

it's not just one region. These issues are interconnected globally. What happens in one country can ripple out and affect others.

[@JasonAmir-qo4uo]

For instance, China's economic slowdown has significant implications for the rest of the world given how integrated our economies are.

[@pauprat8495]

I remember Spain pre-crysis, people working in the building industry were earning 2000 euros per month, there were BMWs everywhere. Everybody was leaving high school to be a plumber, painter.. no one wanted to study when they could earn more at the construction sector. Banks issued mortgages for the 100% of the value of the house, and even stretched more to include the car and a holiday trip. No one thought it was bad because house prices always went up.

[@marcsolloway3941]

If there’s no demand in Spain, they can easily get work in construction elsewhere, most countries have a housing shortage and the trades are the last thing on the list to be automated!

[@TheNadinucca]

Totally. That's also how I remember it. I was just a teen in the early 2000s and I remember thinking that the whole system was unsustainable. I know people who've gotten into 40-year mortgages for overpriced homes, with the mortgage including extra money for furniture and even a car. So they've ended up paying for a car, or for that dining room table, for 40 years... Ridiculous.

[@mariapuej]

@@TheNadinucca I remember this too. People lived as they were rich, when they were actually not.

[@MrMaximino92]

They can’t move to other countries, they can’t speak other languages.

[@imjatse]

I am 62 and I remember exactly the same. In those years I collaborated in a neightbordhood asociation working with young people and in one day we found all of them got working getting unbeliable good salaries. It was clear that was going to explode. And it did!

[@Garris_Shrike]

Another interesting consequence is that today we have a massive amount of houses owned by banks that they will NEVER sell. They rather keep their fake value in the books than sell it for their actual current value and write down the loss. This drove a massive "okupa" (squatter) phenomenon as banks never tried to get these properties back. They just don't care, even today.

[@joajoa9584]

I wouldn't say a "massive amount of houses". Actually, the ratio of empty houses is decreasing every year in the most dense cities like Madrid.

[@Garris_Shrike]

@@joajoa9584 more than 15 years later is decreasing in the capital. Gtfo.

[@quemades]

Rubbish, one of my former customers works for banks getting rid of those empty houses at knock down prices. Try finding a cheap holiday rent anywhere on the Med, no chance. 58 million visitors this year so far, taking 108 billion off them. I dont rate this economist

[@Brurgh]

@@joajoa9584 obviously not in tyhe capital, but if you were to travel to any rural town there are more and more vacant buildings... as more and more people want to live in the cities.

[@deelag5444]

@@Brurgh That is mostly because of the issues that spain has with water and other things in villages and smaller towns... There isnt enough water supply... Also all young people are leaving the country or going to big cities at least

[@yoelgallardoortegon935]

Hi, I'm from Spain, glad to see all this mess isn't going unnoticed. I'm 23 and getting a well paid job inside my own country feels actually impossible. Both my elder brother and sister had to go real far to get a stable job that pays enough to live (italy and holland) and it seems to only get worse with time. I fear I'll have no other choice than to follow on their steps and bail out while I still can, which is a shame, huge one at that. Hope SOMEONE learns from the mistakes my country made.

[@MB-xe8bb]

Why -- the rich profit from booms and busts.

[@Dashie-]

How on earth do you find a well paying jobin Italy of all places?!

[@TheShinyZoroark_]

​@@Dashie-imagine how hard it is here in Spain when he found a stable job there by your saying

[@oliverbold9724]

No debería aprender tu país de esto. Y si es tu país te puedo hacer responsable?

[@KoDeMondo]

Here in Australia is the same buddy.. Canada , new zealand UK follow the same path

[@dustyday837]

spain never recovered from the 2008 banking bailout - it's still paying off bank debt with interest to the eu until 2027 or later, and they raised taxes massively to finance that

[@mitjapintar4609]

most of the planet is still paying debt for bank bailout in 2008. not just spain. and probably payin in off with other loans.

[@hamzamahmood9565]

When America suffers a recession, the whole world follows. This has been true since the Great Depression of the 1920s. Spain is not unique here.

[@XanderVJ]

​​@@hamzamahmood9565 Nobody hates Spain more than Spaniards. They've been dragging a massive inferiority complex towards other developed countries since the 19th Century that makes them believe they are uniquely bad at quite literally everything.

[@ivani3237]

@@mitjapintar4609 Iceland just decided to default by its debts and that was best decision ever

[@netiturtle]

"not recovered from banking bailout" as if the bailout, and EU, was the problem

[@hugoyoutubechannel]

I’m a Spaniard born in 2003. Never in my whole life have I heard people consider we are out of that crisis, in the sense that we now do not live better than 2008 or pre 2008. And that bearing in mind that I come from one of Spain’s wealthiest regions (the Basque Country)! Of course we are no longer in a recession but many, many people’s standards of living are not quite the same. This used to be a country in which a full time job paid all of the needs of a family of four. The rise in food prices, services and housing has obliterated most people’s purchasing power and it shows when people look back in time and hope for times like the ones they lived.

[@HHLPA]

Yo soy del 94 y el covid me terminó de joder la vida. Desde entonces estoy atrapado en un pueblecito de Castilla Y León. El sobrepastoreo y los cultivos lo han dejado todo desertificado y cada año en primavera-verano el salir al campo significa ver una mierda de animal cada 25 cm. Me planteo viajar a cualquier lugar del norte y sobrevivir como sea en vez de seguir en este infierno, creo que ser vagabundo en el pais vasco, Galicia, etc tiene que ser mejor que estar en este infierno seco y contaminado. Mientras mis padres con su piso en madrid alquilado, su pension, es posible que hasta les subvencionen placas solares... en fin, vaya puta mierda de pais y vaya generacion langosta que ha arrasado con todo, incluso con sus propios hijos.

[@0783155]

Not just Spain. In Netherlands wages have barely risen since 2008. An average family can't afford to rent/buy a house with two full-time (middle-class) incomes. The happy few are those with rich parents really. Or expats that barely pay taxes..

[@taiyoqun]

What do you mean you've never heard anyone say we're out of the crisis? If I remember correctly, the "Ilustrísimo" ex-presi Raxoi said we'd left like in 2014 or something, didn't he? Apparently the guys at the bar told him the crisis was over and he hurried to give a statement to the press. Of course, he's what you would call, how do I say this? In the words of one of his colleagues, "Gallego en el peor sentido de la palabra". You know, the salt of the earth. A common man. A moron. Seriously, look it up, it's one of those dumb things he used to say while they stole millions that could have gone to helping the country. But hey, don't worry, the PP keeps trying to put Galicians in power, because apparently we never learned that's a bad idea. Im galego myself by the way. If I call Galicians dumb it's because I know ourselves too well. Mfs keep voting PP even though we've been screwed by them for basically 100 years now.

[@juanpabloperezgomez4349]

Spaniard born in '79 here. Sorry to burst your bubble but no, a full time job was not enough to cover the needs of a family of four already when I was a kid, unless it was a really high paying job.

[@joseaguirre744]

Hola amigo

[@neeneko]

I think as a general rule.. any time real estate investors and developers get excited, it should be taken as a warning. When they start winning, everyone else is about to lose.

[@albirtarsha5370]

The need for housing should generally follow the opening of jobs and not vice versa.

[@puraLusa]

Oh yes let's show economic ignorance and vilify (choose group based on race, activity or class) to justify events 😂 As if the narrative hasn't been tried in various forms in the xx century leading up to war and suffering 🤦‍♀️

[@DJVARAO]

Mortgages are borderline scams.

[@FictionHubZA]

You should be cautious anytime investors are excited. Happened to Japan as well.

[@akl4709]

In economics there are winners and losers. There is no gain of some without others losing. So if you're poor/lower class and the rich/top1% get excited then you should be worried

[@davidc1878]

Nothing was learned. I am from Canada and you illustrated nicely where our housing/financial bubble is sitting. There are so many parts of society that benefit from inflating bubbles and maintaining bubbles, including municipal governments or anything where taxes are dependent upon high property valuations.

[@carloscabrera1912]

The reason why it is happening worldwide is that there are no country governments anymore. There is an economic plan that it is followed to the letter in every country. It is called liberalism and its goal is to transfer all the wealth in the wold into the hands of a few. It does not matter who is president, prime minister. Only the ones who are loyal to the powers-that-be will get to be elected...until democracy collapses out of people's disappointment, which is not far. They are preparing for this scenario.

[@adamg5780]

No kidding. We are a ticking time bomb.

[@ijhuana]

Spain mistake was to save banks to protect the money of the most powerful. Politicians got for years access to unlimited funds cards also called "tarjetas black", to keep them happy while banks and cajas were more and more in debt. When the bubble exploted they quickly nationalised the banks debts rather than let them die.

[@mikelantonana2952]

Best part is the government at the time saying it wasnt a bailout

[@MrFernanrc]

I think someone is in charge of the world who tells them what they need to do. When it comes to banks, they are theives, the banks might even be EU banks with spanish names, but they are horrible, I feel afraid to move to spain due to the banks and the government who is controlled by the same person who runs the world. the new world order runs everything and makes it a horror story for everyone. no matter where you live.

[@cunninr2]

UK did similar

[@p.n.hajime7633]

Welcome to Japan which didn’t pay the bank. We haven’t recovered from the crisis in 30 years and it’s nearing 40 years. At least Spain is nearing exit in decade and a half. While our emotion screams repercussions to those who brought in the risks, damningly, saving them really is the “right action”

[@Garris_Shrike]

@@p.n.hajime7633 It is recovering at the cost of an entire generation's future. It has even sunk the birth rate.

[@Neilos-sd6ti]

As we spaniards call it: La crisis del ladrillo

[@foughtflea9201]

The crisis of the brick?

[@wanderer2688]

​@@foughtflea9201 Yes, or the brick bubble too

@@foughtflea9201 Correct.

[@davidc1878]

@@wanderer2688 The 'brink bubble'... very appropriate.

[@mbwahaha]

​@@davidc1878 Not really, it was a credit crisis, people would get loans for a house +10% for vacations + a car + some more for a flat screen tv, without even meeting the requirements, sometimes faking their earnings with the bank workers complicity. That created a high demand on housing and other markets, but since housing is heavily relaying on loans for buying and building, it was hit the hardest.

[@kevinswift8654]

I married a Spanish girl and have been living here for a decade. I also have an econ degree (for what it's worth) and have read a lot about the EU debt crisis as well as about the Spain issue in general. I would say that this video is spot on from everything I have learned from on-the-ground experience, anecdotes from my wife and others, plus reading. The only thing that is not 100% clear is if this is truly a warning: neoliberals would probably disagree and say that, while Spain overdid it in housing, nowadays the global economy is more "dynamic" and are using debt in pursuance of technology, AI, reshoring, etc. There may be some truth to that, but to what extent is not clear (I tend to side more with the creator of this video). As for what happened back then, my wife was in uni and she says before the crisis, people would go out and easily drop 50-100€ a night like it was nothing. After that, people went out less, and if they did, they were really careful with their cash. Also, people were dropping out of high school in order to do construction because you could make 6000€ a month (if I recall correctly) in construction. There are still houses in our village that were built back then and never occupied. As for what it's like now, the labor market is horrible. Unemployment is not as bad as it seems on paper, given that there's a large parallel / under the table economy of unofficial work. But there's no stability or longevity there. Work contracts and working conditions are disgraceful. Luckily, by relying more on the family (living with parents longer, inheriting houses from grandparents, etc.) and thanks to low cost of living, people are able to get by OK (at least in villages, I can't speak for large touristic cities - I believe they are having problems there). But there's no feeling of optimism or dynamism here. The economy is truly stagnated. As I said, the video seems spot on. Well done and you have a new subscriber.

[@DP-fp1uf]

The Ai will leave people unemployed. Some countries have strong unions which will make transition slower . Immigration is becoming a politically sensitive topic so countries like e.g France(either political side) would be less inclined to alienate potential voters and adopt the long term benefits of AI . Maybe different countries will see arbitrary % of how much work is done by AI in a company. I would predict Ireland , like in the past take, the Business' side over the employee during economic downturns and see it being early adopter of AI or lax regulations around it compared to it's neighbors. @kevinswift8654 How much would you agree?

[@brago900]

@@DP-fp1uf What is happening in the UK now is going to happen in the rest of Europe. Illegal immigration is increasing crime at catastrophic rates to the point where murders and rapes perpetrated by Moors have become the norm. Furthermore, corrupt parties give huge subsidies to illegals in order to then naturalize them and thus buy votes. More and more people are protesting against these practices. If this is not resolved, it will explode and it will be bad for everyone. If we end up radicalizing, everyone will have a problem. Think about what the nazis did, now imagine an entire Europe in line with that kind of way of thinking when critical parts of world production are located in Europe. Frankly, as things stand, the only thing that explains the current situation to me is that someone wants to create an international conflict and is pushing buttons in order to cause a large-scale population reduction.

[@Tonyx.yt.]

6000€ as a indipendent tradesman yes, defiintely not as employeed worker

[@blackshard641]

Nobody expects the Spanish Premonition

Aha!

[@pauloakwood9208]

Do the British have any other jokes? One sketch by Monty Python 50 years ago and it seems every Englishman since then is just waiting to use again, and again, and again.

[@callumcox705]

@@pauloakwood9208yea nah man one joke out of an absolute plethora. To be fair to the Brit’s there sense of humour is world class

[@stage6fan475]

Wonderful! HA! It is amazing how those old Monty Python routines persist in the memory.

[@darthbumblebee7310]

⁠@@pauloakwood9208 come on man. They already lost the empire. At least let them keep their jokes

[@pvpcanario]

i live in Spain, middle class has been wiped out and they´re suffocating entrepreneurs out of every cent for taxes, when government workers live better than entrepeneurs, you know you messed up

[@santisven]

I live in Argentina and Sanchez's policies are a copy-paste from Kirchner's policies here. It left us with 50% poor population. And don't get me started on Venezuela, Nicaragua, or Bolivia. If a politician is within Foro de San Pablo. Give him power for enough time, and it always ends the same.

[@Mrch33ky]

Well said.

[@akafede4351]

I agree, I'm an autónomo (self employed) and the amount of taxes and the bureaucracy is downright stupid. I always tell my friends that since I'm an autónomo I legit feel like a big piggy bank.

[@mckiwen]

I live in Spain, taxes are below the oecd average and well below other European nations. Salaries in the public sector are well below the private sector and the economy is currently the strongest in Europe.

[@akafede4351]

@@mckiwen 2023 tax wedge on the OECD was 34,8%, while Spain has a 40%. Yeah the public sector, that's why everyone wants to score an "oposición", to get a worse income and less rights than the private sector. "Strongest economy in europe", with one of the worst productivity rates of the EU. Stop watching Spanish TV, and go right to sources, it's like hearing it being said straight from the government while being in campaign. Cheers from a fellow Spaniard

[@TryThing-ik9et]

As I wise man said: "Going to Spain looking for a decent job is like going to Iceland looking for a tan." Don't be fooled by guys saying that Spain has a growing gdp per capita or whatever. If you want to be well-off in this country you have three options: work for an international company, be a public servant or avoid taxes at all cost, or in other terms, black economy. People who deny this reality pretty sure that come from a well connected family. Speaking from experience.

[@jolp9799]

had a local woman tell me they rarely see salaries above 35k unless they're working for an international company. I heard of a chinese company had an office there and they were paying higher wages than normal, I thought that was crazy!

[@hugoyoutubechannel]

absolutely true, as a Spaniard. A well off person in Spain is either a) someone who inherited property and cash b) a civil servant/politician or c) making money in the black market and that could be having a second job paid cash in hand, drugs or whatever

[@taiyoqun]

I have an Argentinian flatmate. When he first came here, people told him to go away. I had to explain to him that it wasn't racism, it was honest advice worrying about him. People thought, if you came all the way to Europe for better living conditions, why didn't you actually go to Europe? Poor guy has been slaving so bad he went from being far-right worried about employers, to slowly moving left and worrying about workers rights.

[@oliverbold9724]

Los españoles son de risas. Con 25 años quieren cobrar 2000-2500 euro. 😅😂🤣😂😅 España Parece la La República Democrática Alemana y esto en 2024😅😂😅😂🤫

[@miguelanderl]

​@@oliverbold9724 Sabias que en 2014 30.000€ brutos equivaldrian a 50.000€ brutos actualmente? Y que las tasas de IRPF no se han deflactado acorde a esa inflación? Estás pagando más impuestos porque se sigue con la filosofía de "30.000€ es de ricos", cuando hoy dia con eso eres justamente capaz de vivir...

[@phoqueme]

The average person will never know or fully understand all these complex issues and the educated ones who graduate college to work in these fields often become corrupt and cause these issues in the first place because of greed. What a wonderful world

[@Br3ttM]

The average person doesn't need to understand all the issues, they just need to understand the concept of a bubble, and see rapidly increasing prices for anything that could be considered an "investment" as a warning sign, not just an opportunity to ride the increase. Considering the number of people who fall for actual scams and "get rich quick" schemes is so high, though, getting the majority to be cautious of much less blatant issues is a lot to ask.

[@MB-xe8bb]

These are voters, need to understand something in order to vote intellilgently.

[@lilbullet5300]

Or the ones who understand will be winning in the comments for likes ❤ we do be all the same aren't we. Have a good one

[@Hjises]

Sounds sadly so dystopian

[@FC-xc3zy]

Well said...

[@andrewjgrimm]

As an Australian, I assumed a lack of housing supply contributed to high prices. Yet Spain had a high supply and has high prices?

[@user-sp6jj3lh2o]

High prices only in certain areas. Most of the territory is relatively cheap

[@PhthaloJohnson]

@@user-sp6jj3lh2o Most of the country has no jobs either and unfortunately Spanish boomers wont let you work from home no matter what.

[@PJ-om2wq]

Prices are high if the property is near a beach, or Madrid due to the job market. Otherwise worthless.

[@carolynpantlin7626]

Fueled by holiday/retirement homes for boomers

[@rodrifoley6729]

@@justadude4826 real estate is super cheap in the areas where no-one want's to live or can find a decent job

[@Thatwaterguy2]

What do we not learn, when we have more access to data than any time in history, but keep making the same mistakes?

[@maxborn7400]

yeah, keep wondering that. While your corrupt politicians play the dirty racist politics, the general populace is more than happy to blame everything on one demographic rather than look at the nuances of the policies enacted by their governments (if they are even aware of it). When you have the credit flowing, no one cares. When the credit supply runs out, immediately, "evil brown man!!!" Pay no attention to your own native wealthy, ruling class, who keeps you down and pitted against each other.

[@alsanchez5038]

"We" is uncoordinated mess of human beings that are not suited for a complex society. It’s so easy.

[@nntflow7058]

Unlike Poland, Romania or The Baltic, many western european countries refuses to reform their economy. They are riding high before internet became the norm between 1990s to 2008. And now many western european countries failed to catch up with the rest of developing countries in terms of internet development which drives the biggest growth in 21st century.

[@acuteangle1234]

Power

[@RR-et6zp]

girls in politics, non logical

[@rosscads]

Meanwhile, Ireland was experiencing a similar property mania. Many of its newly minted paper millionaires “invested their wealth” in Spain. The bubbles popped with the GFC in 2007/8, devastating both nation’s economies. Yet that’s where the similarities stopped, and their fortunes since have been very different, maybe worthy of a video of its own @EconomicsExplained?

[@MrBizteck]

Ireland has only recovered 'on paper' its GDP ect is roaring but thats only cased on multinational investments that are not generating any real tax revenue or input into the real economy. the real economy has been stagnant for 15 years. Unemployment is down only because Emergration is once again a young persons top choice. In fact we are flooding to Canada and Australia.

[@thegroggers]

​@@MrBizteck​@MrBizteck none of that is true, tax takes are at record levels, native emigration is low, immigration is high and res. Vacancy levels are very low, in fact there's a housing shortage. In terms of domestic gdp activity is also now surpassing 2007 levels. You have made some statements about the state of ireland which are 10 years out of date.

[@sor3999]

Overinvestment into real estate strikes again. Now it's China's turn.

[@ColCurtis]

0:50 not that plumber, he's turning that fitting with the adjustable pliers backwards, in the first slot, using two hands.

[@MichaelChengSanJose]

The problem in Spain wasn’t only clear with hindsight. It was so big, we saw it coming hard in early 2008. I was doing market analysis for a construction materials manufacturer considering an expansion into the super hot Spain housing market. But, looking at the crazy amount of leverage, including the appraisal issues and the speculative levels of EU investment, it was clear that the fall was coming. So, I recommended not expanding into Spain and staying within the US instead in 2008. Yes, we also got burned a few years with our housing bust, but we’re far better off today.

[@Kuiriel]

Any good market analysis into the madness of the Aussie housing market?

[@KamikazeCommie501]

Doesn't matter one little bit whether it's predictable or not or if people have literally watched it happen before. As long as there's money to be made, it will keep happening.

[@jorgemontero6384]

But you know what is funny now? Spain's house prices are still too high for most Spaniards, as there really was quite a bit of demand, if just for AirBnB, retirement and vacation homes. Today Spain needs to build a lot more more housing, again.

[@Twestliw]

Worry about how the Asians who are ruining the bay no one asked for your advice for Spain.

[@lordbendtner7021]

​@@jorgemontero6384Does it include rentals? I heard you can get a 1bdrm in Valencia for under 700 per month...

[@ElDaumo]

Living Space should never be an Investment

[@TheWolfXCIX]

Land should never be an investment. There is nothing wrong with providing rental properties in a fair market.

[@predabot__6778]

@@TheWolfXCIX ALAB - All Landlords Are Bastards.

[@ElDaumo]

@@TheWolfXCIX there are no fair markets under capitalism

[@oliverbold9724]

😂🤣😂🤣🥱

[@KoDeMondo]

No is not

[@jmcllinux]

I live in Spain ..spaniards are taking really hard times... low salaries and impossible house renting and prices... think is a completely false image of current economic status... economic acquisition power of families is getting lower and lower due to inflaction.. you can ask whatever family what can buy this year compared to last one...

[@fridericusrex9812]

So sounds just like Canada

[@barbarar5869]

Unless they are moving to a big city for work, realistically, how many Spaniards rent? The ones I know own their properties. I think that for many years people's lifestyles were enabled by their parents, and maybe now that well has run dry.

[@searingsword-4-21]

@@barbarar5869 Almost the entire spanish population lives in big cities or close to them and many people rent there, tho nowadays renting is a bit less popular than before because the rent prices are so insane that you are better off getting into debt and buying a house at that point (if you have enough income stability to be granted a loan, which many people don't have, specially those who work seasonal tourism jobs that make up 15% of the economy).

[@ava-he9li]

@@fridericusrex9812 don’t compare because is not the same case

[@k.umquat8604]

Same stuff in Turkey

[@ayoCC]

Spain needs to pursue industrial policy to bring in manufacturing jobs Europe is too top heavy, since we sent all of our manufacturing overseas. We need to create market conditions where we can domestically produce most things as well, maybe not as market leaders, but at least as emergency capability. Having these industries can lead to hotspots where people innovate. Edit: for example, if you wanna sell in spain, you must have 20% of production capability within spain or 10% spain 10% in EU. Another trick, must be in a joint venture with local company, at with at least 10 or 20% stake (spain or EU) as opposed to 50% what china does.

[@Globe_Glider]

Europe is done, they sent manufacturing overseas now that the global south is more educated they are more able to offer the same services the Europeans can offer. I wouldn't want to continue living in Europe as it will only continue to get worse, living standards will drop and the conflict in russia/Ukraine will definitely spill over into the rest of western Europe soon.

[@nadie8093]

@@Globe_Glider the global south is nowhere near as capable of either manufacturing nor most services as Europe. Factories in the global south usually have either European or American managers and chief engineers (and owners), which means this countries can bring them back relatively easy. It means little to the global south because most of the profit still goes to USA or EU.

[@quoderatdemonstrandum7215]

​@@nadie8093Respectfully, what is your source? I assume that a lot of manufacturing in China (where most manufacturing gets done) is done by the Chinese themselves - they won't need an European manager. I know it is different for instance in the hospitality industry where it still looks high-end to have a foreign-looking (white) manager

[@ronanfitzpatrick1261]

​@@Globe_Glider Where would you live then?

[@Cartafilo_XXI]

It also would have the posibility to revivify our more rural areas and decentralize the country. A heavier investment on both our primary and secondary economic sectors would be a godsent. At the moment EU lawmakers are rawdogging us about it, though, and our government is not much better.

[@kirstywells5310]

My first job in Spain, Estepona, Costa del Sol was working in real estate 20 years ago and it was abundant and then the bubble burst: so much corruption/back handers between lawyers, notarios, realtors and construction companies was happening. Then the interest turned to Dubai and Bulgaria. 21 years on still here, working in a different profession. Buying a property now is very difficult, inflation is not inline with the income and second home owners are out pricing the market.

[@ducthman4737]

The problem was and still is cheap Euros from the ECB printing them into worthlessness to 'stimulate' the economy. You can't print yourself into prosperity. Only savings create prosperity. Today savings are destroyed by inflating the money supply to not pay the bills.

[@frankstrawnation]

This is a global problem. Central banks and their printing frenesi are destroying the world's economy.

[@Gunvaldtheoneandonly]

Not as a whole, but asset holders benefit massively from printing compared to labor.

[@Alejojojo6]

I find it hilarious because Spain got the spotlight but in reality the situation was not as bad as it was in Greece, Portugal, or even Italy. In fact Spain was able to borrow the least amount of money from the central EU. Most people believed Spain did borrow a lot when it didnt and it was able to give back what it took and the interests. It was even praised by the EU for it. The problem long term is that high employment has remained mostly in the south of the Country, yet the North (like the Basque country) was extremely resilient to the crisis.

[@animula6908]

A lot of comments from Spaniards and Spanish nationals confirming it, so I’m guessing it’s a case where people gamed the system to create “good” data to make their policies look successful. A common temptation for administrators who want to look good on paper, but lack the wherewithal to actually resolve complex problems. Maybe they even really don’t understand that economic markers become less predictive of circumstances as you intentionally hold the thermometer to the flame.

[@akafede4351]

​@@animula6908that's exactly what is happening. They tell us that we are the "motor de Europa" the "engine of Europe" because we are supposedly growing the most... How can that be with the high unemployment rate and the ageing population and the low work efficiency rate we are suffering?, it's impossible, something is just not right. We didn't recover from the 2008 crysis, you can easily tell

[@tendrillion3580]

@@akafede4351 Well, considering how they get the unemployment rates it's also worth noting that in Spain it most likely is inflated, since many young people, specially foreigners get registered in the unemployment office, counting as unemployed and receiving unemployment benefits but still working "fringe jobs". There are also many other "unspoken" issues with unemployment in Spain that when combined reflect a different reality.

[@Alejojojo6]

@@animula6908 Nah not really. Im not a Spanish nationalist but this video is focusing only on the negative. Seema almost as if the country was bankrupt when it isnt. Also this administrative data come from the EU not the Spanish government. They dont have particular interest on showing good data for spain when they did show bad ones for greece.

[@Alejojojo6]

@@akafede4351 The official unemployment is not real either. Spain has a very large underground economy. A lot of people "unemployed" may work in B. Also the Spanish people have shown worse perception of the crisis and economic output if the country compared to reality. They have large for example a far perception of corruption than what its actually true, etc... The perception also changes if you ask a Basque where official unemployment is 8-10% to someone in Andalucia where unemployment is 30%.

[@davianoinglesias5030]

It doesn't matter how many crashes we experience, we'll never learn, no one questions high returns, greed will always win

[@markl9349]

Jesus is coming back soon and will sort it all out. Get close to him while we wait. God bless!

[@williamday9628]

Another completely ridiculous thing that happened during this period, is that banks would give out mortgages based on their valuation of the property, not the actual sale price. It was typical to take the person the bank sends to value the property out for a slap up lunch with wine and schmooze them so they would give you a nice high inflated valuation. Yes the gift of hindsight is a great thing, but banks giving out 120% mortgages to literally anyone and everyone like candy was probably only going to end one way.

[@isaacdalziel5772]

It's interesting because when I look at that first graph, I just see that now Spain are at a slightly better position than you would expect them to be. If you ignore the massive jump, they're at a slightly better position than the previous part of the graph would suggest. It's like they had massive growth, which they kept, but it just stopped them from growing any further for a while.

[@Dozla78XD]

It's mostly inflation artificially increasing GDP that doesn't really equate to economic growth. The spanish economy has been fucked for over 20 years but politicians are unwilling/incapable of tackling it. And it's only getting worse with an aging population and 60% of the country's budget being used to pay pensions

[@Angel24Marin]

Also is the graph is in USD nominal dollars so it's affected by fluctuations between Euro and dollars. The recovery is more noticeable with fixed dollars to a year (real GDP) or PPP adjusted or local currency.

[@robertbriggs5033]

I’ve always wondered why Spain is literally littered with un-finished and abandoned houses, and this video answered it quite nicely. Thanks EE!

[@loicjombart1060]

un-finished and abandoned houses no way.Fully equiped and not abandoned.Its an asset you wont abandoned

[@micalet_jones5196]

As a spaniard, situation is fucked up even today

[@Benito-lr8mz]

Pero siguen viniendo cientos de miles de inmigrantes al año😢

[@totallynotd4ve]

@@Benito-lr8mz eso si que odio, la incompetencia del psoe con los imigrantes, aun que no soy el mejor fan de vox, creo que el psoe es mucho peor con esta situacion, y no hablo por los imigrantes legales que si trabajan, hablo por los moros.

[@oliverbold9724]

It just started. You Will feel And see. So du mir ICH dir.

[@LordCorwin1]

I'm from Spain, and when you say a plumber driving a Bentley, it is true, I saw it (although much more BMWs).

[@sg3247]

Yep, and Porsche Cayennes and all kinds of German 4x4 cars driven by young construction workers.

[@baylorc4904]

You think BMWs are in the same category as a Bentley?

[@KirillTheBeast]

You made me laugh out loud with that one. I remember seeing the "canis" in my district driving BMWs just a few years after having dropped out of highschool to go work in construction. Then those same guys were the ones who got shafted by predatory loans from the "cajas" and managed to survive, unless the rest of the populace, who got properly fucked by the 2008 scam-crisis.

[@russellomax9319]

My painter used to drive a ferrari 😂😂😂

[@ScarySox]

@@baylorc4904 For most they are equally out of reach, so yeah!

[@BrienDunn]

Interesting topics for sure. However, difficult to understand because your speech soundtrack seems sped-up? Perhaps slowing down a little would help.

[@TaylorGaston-z9n]

*Money is not meant to control people, rather it is meant to be put to work producing more money for you. You cannot build wealth without putting money in its rightful place*

[@JeffreyBenson1001]

If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you...prevent inflation

[@BobVienckowski]

Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.

[@DaveSurber76]

Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like Brian Humphery Services.

[@DaveSurber76]

Brian demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit

[@Buckfrisch]

I'm surprised that you just mentioned and recommend Brian Humphery Services. I met him at a conference in 2018 and we have been working together ever since.

[@gmcoe]

"Cajas" where public banks with politicians as directors. Private banks where not the problem (they stopped wasting money on useless construction years prior), the crisis was due to terrible public "investing", that gave a lot of money to get the favor of the people.

[@frankstrawnation]

Incredible, in Brazil we face this very same problem.

[@SusCalvin]

I think telling older homeowners that their houses are not really worth that much is always impopular.

[@carloscabrera1912]

That's democracy for you 😢 Politicians will do anything to get elected. It does not work like that.

[@soldatox3019]

The thumbnail and the title makes it look like Economics Explained nuked Spain out of existence to send a message

[@ronanfitzpatrick1261]

😂😂😂 I mean I just came back from there and was wondering what had just happened

[@mirza2105]

​@ronanfitzpatrick1261 and im about to go visit there in about a month😄

[@StormLord-AOS]

The UN - We ride at dawn...

[@bruce-le-smith]

as long as they don't unleash the emus and those auzzie bouncers from their northern mining and port towns!

[@polca4love]

​@@bruce-le-smith Please, no more foreign species. Between the chinese wasps and whatnot, we are losing our animals fast.

[@P4nda420]

In Poland the household debt to gdp decreased from 36% to 24% in last 10 years and still the house prices are even more unaffordable for an average Pole than Canada or Australia. And Poland's economy is booming compared to the most western countries. How do you explain that? Is the household debt to GDP even related to local house prices? I'm not so sure.

[@AlanTheBeast100]

Spain has regulations that stifle private real estate investment. Only the uber rich and connected can develop.

[@shauncameron8390]

The consequences of rent control bearing fruit.

[@AlanTheBeast100]

@@shauncameron8390 Consequence of inherent corruption and control.

[@juanpabloperezgomez4349]

Regulations now are much stricter because back in the bubble days it was almost a free for all. Pendulum swung the other way.

[@juanpabloperezgomez4349]

​@shauncameron8390 absolutely nothing to do with that.

[@lugi25]

​@@shauncameron8390consequences of capitalism

[@phyllislovelace8151]

Thank you for this, I lived it but thankfully had my brain correctly engaged so avoided being strangulated by it.

[@cradle_of_chaos]

The timing of the release of this video will go down in KZbin history. Well researched, produced AND lucky !!

[@michalm9213]

Its a tiny thing, but the map at 3:55 suggests that Czech Republic has adoped Euro, which is untrue. But awesome video othervise 👌🏻

[@ermholasoytoni648]

As a spanish person I can say we are close to living in a third world country. Our economy in based on tourism, witch is bound to failure, in addition to all the other problems tourism brings to locals. Actually, Spain has a great oportunity to be a leading nation in renewable solar energy production due to the vast and mainly inhabitated areas in the center of the peninsula, these having long and powerful hours of sun exposure, but the reason the government isn’t investing in it is because the big solar energy corporations are acually paying the government not to, since it would be bad for their business. In other words, corruption. If you look deep enough you will see a couple years ago there was a tax on the sun, thankfully it’s been removed now, but we are still facing the aftermath of such desicions…

[@albertotrigosbueno5547]

we indeed are not a first world country anymore, te lo diria en ingles pero no se, la falsa ilusion de que todavia somos del primer mundo es porque toda la gente mayor de cierta edad tiene relativa estabilidad laboral y conodiciones aceptables. Pero alguien joven cobra una mierda, y anoser que sus padres se mueran no tiene medios para vivir solo, por lo que tiene que vivir con los padres o compartir (para la persona media, siempre habra gente que tenga mejor trabajo y se pueda permitir ) Una persona de 45 años puede encontrar trabajo "relativamente facil" porque ya tiene su experiencia y porque ya no puedes pedirle a una persona que ha trabajado durante decadas requisitos absurdos como estudios no relacionados con su empleo, pero a los jovenes les joden la existencia pidiendo estudios hasta para limpiar cristales, sin experiencia hay zonas que NO vas a trabajar, no todo el mundo tiene enchufes. Yo tengo autismo y sin fin de conmorbidades, 41% de minusvalia que deberia ser mas por esas conmorbidades y mi situacion actual, y literalmente es imposible trabajar, sin experiencia sin estudios sin nada, buena suerte, estuve un tiempo viviendo donde mi mujer que es un pais relativamente pobre (republica dominicana) y sin papeles ni nada solo preguntando un dia en un supermercado me dieron trabajo. Asi de triste es este pais, y ayudas nada de nada, no puedo estudiar si no tengo un plan adaptado, no me dan becas para ello, ni inclusion laboral, ni paga nada

[@abelcarrion7256]

As a spanish who has (and is still) suffering from the 2008 economic crisis, it hurts to watch this video. Still, good job, it is very well documented.

[@Vera-Slow]

Almeria is doing good. 😉

[@oliverbold9724]

No its not much to.soft!!!

[@PilotVBall]

Never follow the trends. Never listen to the economic experts.

[@MB-xe8bb]

Trend investing works for a while.

[@oliverbold9724]

Say never never.🤭🤭🤭

[@markmorales476]

What happened in Spain also happened in the State of California. Very similar: loans being given on bloated values.

[@DavidYoung81]

I live in Spain, one other major problem is demographics as it is becoming an old society with fewer and fewer workers for the generous pensions that are offered.

[@asnovasdodia]

It's not really a problem due to immigration.

[@WestCoastAce27]

Yes, the young are moving to other countries.

[@lareau6]

Watching this from canada. What is unique to us is the undersupply and underconstruction of houses despite prices in bubble territory. Like spain, the consumers confidence in housing is so high that every barrier to higher mortgages were bypassed, higher estimated value of the houses by banks, gift from parents coming from their own equity and cosigning. Houses don't sit empty execpt condos on toronto and vancouver. One thing to consider is that on a 5 year period, all of our mortgages are varriable. This makes us much more sensitive to our central bank policy than the us market.

[@trademarkraft5102]

Canadian real estate is the only truly safe investment. The Federal Govt knows that so much of Canadians' net worth is in real estate, that it will bend over backwards supporting the market liquidity and prices.

[@brago900]

The Spanish Empire never colonized, the Spanish Empire expanded Spain by creating viceroyalties with the same rights and duties as those of the peninsula. The Spanish Empire invested and made its new territory grow, that is literally the opposite of a colony.

[@nziom]

Lol tell that to Morocco see what they'll tell you

[@brago900]

@@nziom Ask the Saharauis and see what they tell you.

[@nziom]

@@brago900 well they got coloniser by Spain and now Morocco

[@brago900]

@@nziom Western Sahara was an autonomous community, it had the same rights and duties as the rest of Spain.

[@nziom]

@@brago900 I doubt that

[@muhdiversity7409]

5:10 That city skyline with KPMG and PwC buildings is so freaking ironic.

[@l0rdcroissant]

6yrs ago I remember reading up while in Valencia that the property ownership had changed in which if you don't live there you are getting fined and fines were being sent out as they saw these properties were nothing less than foreign investments.

[@danielhultgren4494]

The graph at 15:52 labelled "Global Comparison of House-Price-to-Income-Ratios" is actually an index value showing ratio change since 2015, not at all what the heading says.

[@Cyclopsonlyseeshisdeath]

I was having trouble with what that was telling me. I'm surprised Australia isn't in that table.

[@EmpressMermaid]

9:32 We just gonna skip over the fact that Peppa Pig is casually walking around the street?

[@hypothalapotamus5293]

Why is it strange? Spain loves pigs... Just in a different way than the Eaton educated British elites.

[@Gelogeist]

Yep😂

[@jonah11111]

Reminds me a lot of Canada's current situation...

[@bobbypols1096]

Yes sir

[@liamthomas8029]

Canada, Australia, New Zealand and maybe Ireland too.

[@stephenburnage7687]

I think Vancouver, BC may be even worse

[@Darkaran1]

I'm sorry but why are Basque country segregated from the rest of spain in the unemployment graph?

[@BotDetector-44]

Because the contente produced by this channel is dog sheit yet they have 2M subscribers

[@jaysterling26]

Better at Business see Mondragon? ( joke). In reality could it be the Basque country/ Euskadi has much more independence than the rest of Spain - a reason it's not as volatile as Cataloia?

[@ibaialberdi]

Yeah, I dont get it. Spanish unemployment rate is always considering all of the regions so it makes no sense to put Spain and Basque Country as different.

[@javib8970]

The author wants to underline how the unemployment hit different in the highly industrial north

[@carloscabrera1912]

The Basque Country has always had tax privileges since Medieval times. As they had coal and iron, a steel industry settled in the XIX century, which atracted more and more factories, creating wealth that was not taxed at the same level of other regions. Its location in maritime range to north european countries did the rest.

[@oeckstei]

When you study the world with an economic lens everything makes sense on another level and is very helpful when making certain life changes like career and where to live. Grateful for this challenge as I work in healthcare and studying health from a financial and economic POV has aided me with a better understanding of the health outcomes of certain areas and populations.

[@KasperViggoJensen]

Statistics around the time of the change to the Euro from the peseta, and before, are hard to rely on. Black cash money was extremely prevalent and completely standard. It’s also why the building sector saw a boom around the time when Spain changed to the euro. All those undeclared millions of pesetas had to be spent on something before you had to fill in paperwork to exchange them euros.

[@andreasarnoalthofsobottka2928]

Lago Martianez (in the front) and the Hotel Skyline of Puerto de la Cruz/ Tenerife @13:25 Far background: La Quinta and Santa Ursula.

[@vipeton.8927]

Fantastic city❤

[@andrewbarabas4900]

12:24 Household debt to GDP percentage of Australia relative to Spain doesn't seem like it should be much of a warning given that Australia's has always been higher and is relatively steady since 2008. Also high prices in Canada and Australia are driven by low supply more so than speculation+overbuilding.

[@MariaRodriguez-dx6sm]

Still, in Canada and Australia, you have real estate sucking most of the money out of the economy and now both economies are basically stagnant (not innovation, not new companies, justca lot of speculation and commodities)

[@andrewbarabas4900]

@@MariaRodriguez-dx6sm that sounds like a more relevant argument to have made than the household debt

[@milkydj]

@@MariaRodriguez-dx6sm That is a problem for those economies, but it's very different from speculation and bubbles which create value that doesn't exist. One leads to stagnation or at least lower growth because too many resources are dedicated to one part of the economy, the other leads to a crash because the value never existed. Either way, it's a very different situation from Spain. China, I think, is closer to Spain in that respect than either Canada or Australia.

[@MRCL-190]

Why are you talking so fast?

[@2msvalkyrie529]

He's got a taxi waiting. Meter running obviously..?

[@javierfinat1184]

An excellent video. Congratulations! It would be desirable for former and current officials of the Spanish Economy to see it, both from public and private entities. Thanks from Spain.

[@bangpumpam6074]

As a resident in Spain, I think the most important lesson to take from this is to not trust conventionaly low salary low specialization jobs that suddenly bring in a lot of money and get loans just because the bank is willing to give them to you (nowadays this probably only applies to emerging economies) because the day-to-day stories back then were getting rich from working at construction sites, getting a mortage, losing your job when there´s suddenly no demand for constructing properties and losing your home after getting used to a life of luxury... but the topic of what happened back then is still a really popular conversation topic nowadays, because properties seem to be increasing in prize way over their real value(again)and are way higher than the average income per capita and its almost imposible to live alone in one of the main cities without a really high paying job

[@e.o.9094]

Stating in 2024 that Spain hasn't still recovered its GDP of 2007 when they actually did it in 2017 and yet again after the pandemic in 2022 doesn't really help the credibility of this channel... And that is in GDP per capita. Of course, their gross GDP recovered faster.

[@slimynaut]

Yep this channel is mostly nonsense

[@u_lust9161]

The video uses nominal gdp in dollars so the biggest driver of “growth” or “degrowth” is just currency exchange rates and inflation.

[@e.o.9094]

@@u_lust9161 I'm talking in constant real prices which is the only good way of comparing GDP figures of different years.

[@roomie4rent]

Where are you getting your figures? EE uses World Bank GDP which shows no recovery.

[@XanderVJ]

​@@roomie4rentGoogle "Spain 2017 economy recovery" and you'll find several, including the IMF

[@jeffreymortag52]

Appreciate your presentations and competent analysis 🙂

[@DixonLu]

Our friends in Cadiz said they don't travel because squatters rights in Spain are insane: they have 48 hours to evict squatters. Basically, unless the owners spend lots of € in legal fees, their property is gone. How could real estate be an investment in that legal environment?

[@ianjones7488]

That's not actually true if you are talking about your own home, although some judges interpret the law wrongly.

[@DixonLu]

​@@ianjones7488Thx. My friends' concerns are bad judges. Also, still puzzled as to how there can be investment-vacation properties if someone can move in while you are absent? Do people just have someone check every day? Thx.

[@buzzard720]

Been living in Spain since 2002, the description u gave in no way I recognise. Folks were earning a pittance during that time...and still are. The Euro started in 2002.

[@darkrush9602]

Just to make an example. In the 1970 you could go party with your friends for the whole weekend only spending 6€ (1000 pst). Now the bus ticket cost 12€.

[@russellomax9319]

The plumber driving a Bentley made me laugh, my spanish painter used to drive a ferrari 😂😂😂

[@loloflores123]

Probably Leasing. There are many idiots out there.

[@richardallen1555]

In Australia the tradesmen all drive 100k 4x4s, tax deductible if it's heavy enough vehicle haha, busy is coming

[@stage6fan475]

I think there were forces not mentioned here. Everyone in Europe thought Spain would get vast numbers of manufacturing jobs moved from Europe due to lower wages and costs in Spain and a highly educated workforce. What wasn't allowed for was all the wealthy US managers doing everything they could to transfer US jobs to China, including tax breaks and teaching Chinese anything about their processes. Couple this with China had endless coal to power new industries and Spain had no native energy like that. China ate Spain's lunch as far as low cost manufacturing.

[@fmango]

Blame coal and not siestas. All companies I've work for run away at top speed when "lazy Spaniards" are mentioned.

[@josephlombardo1267]

Just a comment to whoever put together the video: square of Spain is not actually in Spain but in Rome, Italy.

[@themechanictangerine]

There is a plaza de España in Barcelona

[@josephlombardo1267]

@@themechanictangerine oh cool haven't been! The one in the video looks to me very much like the one in Rome, Italy.

[@themechanictangerine]

@@josephlombardo1267 yes It is the one in Rome

[@MrMaximino92]

Most Spanish cities have a Plaza de España/Plaça d’Espanya.

[@IvanPompa-lr7iy]

I am from Madrid, Spain, and I should suggest you to double-check the statistics of Dept-to-GDP ratio of the country. According to almost all recent data, it should be well above 100%

[@adamwest1138]

As an Australian I've been saying this for years now. After all the money printing during Covid I was expecting a sharp rise in interest rates as inflation hit. Unfortunately the RBA went soft on rate rises and as a result we've had sticky inflation. They need to get rid of tax concessions for residential investment.

[@verde1501]

And currently, many people in Spain are allergic to the slightest suggestion that we need to build more homes, despite the clear booming price signals, arguing that that will cause another bubble. Sigh, we got what we deserve.

[@carlsderder]

That also annoys me, i am spanish and many people still don't relate high prices with debt, but with building houses lol

[@izzieee3750]

Add to it alll that building on what were natural areas and now have taken all the natural resources, a lot of areas are struggling from water need that we cannot cover and on top of that the genius that allowed to build on the natural paths for the water on heavy rain season are seeing frequent floods, only going up now as climate gets more extreme...

[@vipondiu]

I suppose it is just a "narrative licence" but so that it is clear; back during the top of the bubble, real estate agents were absolutely not celebrities and it was definetly highly unusual to see a plumber driving a Bentley.

[@sg3247]

Bentley is highly exagerated but cars like Porsche Cayenne or BMW X5 used to sell like hotcake

[@_ata_3]

@@sg3247 Not to plumbers. Supposedly that's the point of the narrative. There's no evidence on that and is highly improbable even for very advanced economies in the best of times so no it wasn't "usual".

[@nikjs]

i'm in india. in places like auroville we see large numbers of people come from european countries including spain, and when we dig a little deeper we find that these people were totally broke back home, and have come here because they can live a much better life with the same money here. some are actually collecting unemployment benefits, basic income etc and are able to live comfortably in India etc with that instead of having to slog back home

[@ddayyou]

Now it's just Spain without the S 😢

[@monkeyboysdad]

Great video. Why read it at 100mph? Sounds like it was recorded by someone in a rush who was worried about missing their train to work. Pity 🤨

[@RetroTinkerer]

He talk fast but not 100mph fast, if you decrease it to 0.75 it became unbearably slow. 😅

[@MichaelSalaA]

Pretty sure our politicians here in Australia are enjoying the property mania and their papers gains such that there is no incentive to change the system till the crash comes.

[@AUNEDJ]

Banks in Spain were giving extra money on top of mortgage. Please explain that in most cases in Spain people dont remortgage. It is not a thing there. You get a mortgage for "life" and stay with that lender until it ends. Usually with a fixed rate for the whole contract. So people were asking for some money extra for a new car, a couple of luxury holidays.....and banks were happy with that.

[@betakode3162]

A pretty good economic read on my country. There are a lot of factors to consider when talking about the economy here.

[@JoseGarcia-dy6sx]

Forgot to mention we have the worst politicians ever and a bankrupt pension system that they keep making worse for populist reasons

[@hiumansproject]

Son los políticos que te ponen los anglos. En la practica somos una colonia de UK y USA

[@KevinKimmich44024]

My rule of thumb is the government in every jurisdiction is the worst people in that jurisdiction. US govt is the worst people in the US. Spanish gov't is worst people in Spain, etc...

[@singletona082]

EE, as someone who has at best a 'eeeeeeh' grasp of numbers? You've been a Godsend for making Economics something I can ... OK I don't understand all of it, but I undertand more than I did going in and i at least have a resource to point at that isn't dry as the sahara for elaboration.

[@drankrur]

My aunt lived there during those days. She described how everywhere one could see luxury and design furniture stores. That was the sign really. It was not enough to buy say..ikea. You had to have luxury interior decorating.

[@GRMNCVS]

Well... It's happening again, that I'm sure of

[@skylineXpert]

It varied from province to province in spain. There Is a difference to rural spain, the less of provinces & then the hotspots. Anything around Palma airport, Malaga airport, El prat airport & madrid airport you dont feel It. (trafic with tourism etc...) When I was on majorca In 2015 then I asked about the unemployment, the answer was: there Is no problem In the tourist season. Its mainly a mainland issue. Everyone has a job when the tourist season peaks.

[@ronanfitzpatrick1261]

Great video and well timed. I think there's warning signs in more countries than just the examples given (for anyone giving a sigh of relief) that we're heading for multiple house price crashes - possibly simultaneously

[@typhoon008]

Glad to see the revisit of our country. Last time (several years ago, at the country ranking) almost it was talked more about US States and spanish regions that from Spain economy itself. For some extra economic country context for the foreign viewers: Some could have been said about those youngers that left college to starting working in the construction sector back in 2000's. They were hit hard when the housing sector plummeted, with no other working experience or academic knowledge. The housing market nowadays is really hard, most of the jobs in the country are gathered in the biggest cities, a lot of people must move there, and the house prices (both for rent and buying) increases dramatically. By now, the average rent in Madrid of Barcelona it's about 80% of the average net income, and still increasing. Housing is a necessity, but a limited supply and a lot of people that compete for these only produces a price increase until enough people has been left out of the market. Unlike Argentina/Buenos Aires, Minneapolis or Austin policies of increasing the supply and reducing the rents, here the new supply is totally unsufficient, and almost nobody wants either to share their homes, or move outwards from the city centre. Some laws and politics about squatters and rent defaulters do not encourage people to put their homes in the renting market. The great issue about the relationship between the elderly (both the house owners, and the pension receivers) and the youth (rent payers, and pension payers) wealth transfer is also a cause for the low savings rate. It's starting to be a serious issue in some forums. Greetings

[@ReclinedPhysicist]

It's worse in China. Can an economic collapse there cause a worldwide recession like an economic collapse in the United States does now?

[@watchlover7750]

It is already causing a fall in automakers market in Europe because sells in China are shrinking

[@LongDefiant]

​@@watchlover7750China is building its own cars.

[@robertb1802]

@@LongDefiant People in China generally would rather buy foreign brands because they know the quality of local brands is not good - incidents like the milk powder scandal in China, or the recent cooking oil scandal in the country exemplify why people prefer foreign stuff. People in China consuming local brands is more an indicator people are pinching pennies due to economic hardship.

[@vipeton.8927]

Evergreen was overrated.

[@justinl1880]

​@@robertb1802Haha, dude it's 2024, go read BYD, why do all these Europeans still think it's 19th century like they've just discovered America

[@shivamvishnu5539]

The real estate wormhole is something every economy eventually falls into. The problem is that it is so highly levered that any collective mistake in estimating demand leads to failure. Build too less - you have skyrocketing prices, inflation, unaffordability, speculation and disaster. Build too much - you get saddled with too much debt, empty unproductive capital locked up in empty unoccupied homes, decades of lost growth and unemployment as the economy tries to unlever.

[@Rising._.Thunder]

what should be the way forward for a country like India? Should we stop our infrastructure building spree?

[@alburaq3290]

​@@Rising._.Thunder Infrastructure and Real Estate are not the same. India needs better infrastructure to have competitive logistics and supply chain.

[@victordesilva5352]

Hay un hecho que tener en cuenta y es que los préstamos que se dieron por las autoridades autonómicas, que debían estar presididas por técnicos bancarios, habían sido sustituidos por políticos, lo que llevó a una gobernanza de las cajas de ahorros muy poco tecnica.

[@kallanstedje5133]

You are an amazing inspiration to us all Bianca!

[@alex_zetsu]

I kind of feel sorry for Italy, Spain, and Portugal during that crisis. What they did appeared to make sense at the time. When Greece's economic problems became worldwide news, anyone who heard of Italy, Spain, and Portugal at all just kind of assumed they made the same mistakes. Italy, Spain, and Portugal made some honest mistakes, but Greece's government spending was truly irresponsible and they didn't even fully collect all the taxes they had on their books.

[@markmclewis6737]

I don’t get why Italy is always so easily associated to economic crisis. Yes the debt is high, but I think the italian economy has always shown resilience…things don’t seem nearly half as bad as the direction the uk, for example, is taking

[@alex_zetsu]

@@markmclewis6737 I don't get it either. It's not the perfect economy, but it isn't the disaster seen in a lot of eastern European countries.

[@pauloakwood9208]

I was confused for the whole first half. I kept asking myself, why are we talking about China but showing videos of Spain?

[@bruce-le-smith]

Me too. It seems like real estate inflation is a global issue.

[@yamuiemata]

Back then, before 2008, the bank gave you credit for the house, the furniture and a car if you wanted 😂 That's why even the taxi drivers had a mortgage.

[@jjjjj77772]

Taxi driving is a respectable job

[@yamuiemata]

@@jjjjj77772 of course, however, the banks are NOT supposed to give a 120% credit line to someone based on the average previous 12 months income That's what's wrong about 2008

[@sightseeinginstyle8119]

While I agree that Aus GDP / loan ratio is horrific, I would also suggest that unlike Spain, where (using your numbers), they had built 800k homes for 200k people, Aus is in the opposite category, where we have 200k homes for 800k people (obviously not real numbers, just allegory). Our market isn't purely driven by speculation, but also, sheer demand, where we have too few houses (in the locations people want to live/work) and this has been due to insufficient construction for many years. Easiest way to confirm this is by looking at the rental properties also available. At the time (from my understanding), Spain had a healthy rental market where if you had a job, you could get a property to rent for your family, vs Aus right now, which is in absolute crisis, where dual income families are homeless. Not saying Aus property market won't crash, because I feel it will eventually, but there is going to have to be some massive shifts before that happens.

[@MrJaimejhs]

I live in Málaga and here there were cases of 105-110% LTV for "low risk families"