Debt Deflation in Spain: Record 4.7% Decline in Household Credit, Business Lending Down 10%
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Kiss any notion of a Spanish recovery goodbye.
Via translation, El Pais reports Household credit suffers record fall in October despite the rescue.
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.
Debt Deflation?
Precisely!
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Debt Deflation in Spain: Record 4.7% Decline in Household Credit, Business Lending Down 10%
Posted by Michael Shedlock at 10:01 PM
