Wednesday, October 10, 2012

Bloomberg's Foreclouse Spread to Once Wealthy

Interesting article on how Spain's once booming property market forces parents to be guarantor for their children's home and the impending collapse caused everyone to suffer..

Spanish business people, upper middle class families and their loan guarantors, typically parents of first-time buyers, now account for 60 percent of foreclosures in Madrid, according to AFES, an association that advises homeowners facing repossession. Three years ago, 80 percent of foreclosures were on the homes of immigrants, usually the first to lose jobs and fall behind on loan payments in a souring economy. They now comprise 40 percent of the total, according to AFES.

But it's an interesting read on the events running up to the crash.
Quite similar to what is happening in Singapore now.