Debt Deflation in Spain: Record 4.7% Decline in Household Credit, Business Lending Down 10%

DebtDeflationinSpain: Record 4.7% Decline inHouseholdCredit, BusinessLendingDown 10%

Kiss any notion of a Spanish recovery goodbye.

Via translation, El Pais reports HouseholdcreditsuffersrecordfallinOctoberdespitetherescue.

Credit in Spain continues to show signs of weakness, year and a half after the Troika bailout.

Statistics from the Bank of Spain show that household credit fell 5.2% in October to 793.940 billion euros. If we look at the evolution of the cash flow of borrowed money, the net change in assets is a decrease is 4.7%.

In October, the credit borrowed to buy homes fell 4.7%, maintaining its rate of collapse, to 614.860 billion euros. Lending to businesses fell 10% in October, to 1.081 trillion euros.

In both cases, the amount of money borrowed is at its lowest level since 2007.



Mike "Mish" Shedlock

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit to learn more about wealth management and capital preservation strategies of Sitka Pacific.

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