On John Key’s family down time, Spain and record mortgagee sales in New Zealand

While New Zealanders are once again being feted with the drivel Tracy Watkins writes about our first family this time with a photo which what appears to be a family photo taken with a phone camera  of Bronan and their seriously style impaired daughter instead of a some analysis of what John Key has been doing over there here are some issues you might be forgiven for having missed in the Mainstream media.

Spain is now official toast. No matter what crap the MSM will feed you over the next couple of weeks there is no saving Spain and here is why:

As I’ve warned for weeks, has entered a full-scale Crisis.

This was obvious right from the get go. After all…

*    Total Spanish banking loans are equal to 170% of Spanish GDP.

*    Troubled loans at Spanish Banks just hit an 18-year high.

*    Spanish Banks are drawing a record €316.3 billion from the ECB

(up from €169.2 billion in February).

Things have gotten so bad that Spanish citizens are pulling their money out of Spain en masse: over €100 billion left the Spanish banking system in 2012 alone.

As bad as they are, even these data points don’t do justice to the toxic sewer that is the Spanish banking system.

Case in point, over HALF of all Spanish mortgages are owned by Spanish cajas.

If you’re unfamiliar with the caja banking system, let me give you a little background…

Until recently, the caja banking system was virtually unregulated. Yes, you read that correctly, until about 2010-2011 there were next no regulations for these banks (which account for 50% of all Spanish deposits). They didn’t have to reveal their loan to value ratios, the quality of collateral they took for making loans… or anything for that matter.

So, with Spain today, we have a totally unregulated banking system sitting atop HALF of ALL Spanish mortgages after a housing bubble that makes what happened in the US look like a small bump.

Spain’s housing bubble is the dark blue line below. The US is the gray one.

Oh, I forgot to mention, the cajas primary lending market during Spain’s housing boom were subprime and sub-sub prime borrowers.

Put another way, today the entire Spanish banking system is saturated with toxic mortgage debt on a level that makes the US in 2008 LOOK GREAT.

To whit, Spain has just performed the largest bank nationalization in its history: Bankia. Here’s a brief summation of the story.

Read more

Another very important issue is the fact that driven by the same bubble builders as in the States, Spain, England or Holland namely the Global elite banksters record numbers of Kiwi home owners having believed the hype about the always rising prices of houses bought houses which relied on two incomes to support the mortgages are losing their homes because of the Global financial collapse. 6 families a day are losing their homes in the orchestrated take over of all our real world wealth.

A record number of property owners are being forced to sell up as banks move to foreclose in mortgagee sales.

New figures published today by Terralink International show there were 524 mortgagee sales in the first three months of this year – the highest first quarter number on record and almost six a day.

Terralink managing director Mike Donald said the figures were “genuine cause for concern” and worse than during the same period in 2010, at the height of the recession.

They indicated the economy was still struggling to pick up and he expected more cash-strapped homeowners to lose their properties in forced sales.

“How many other properties are close to being forced into this situation? We can’t answer that question.

“The concern is that while we think we may be through the effects of the recession, it’s still proving to be pretty tough out there.”

Read more