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Wednesday, January 08, 2014 1:04 PM

Household and Non-Financial Credit in Spain Sink, Government Debt Expands; No Recovery in Sight

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Here's an interesting chart regarding credit expansion and contraction in Spain from Guru's Blog. I added translation on the chart in red.

Between 2009 and 2013 bank credit to government grew at rates between 14% and 36%. Meanwhile, credit to households and businesses has been in clear contraction since 2010.

Among other things, Guru asks ...

Can you talk about economic recovery when the rate of credit to households and businesses is still accelerating its decline?

Can you recover an entire economy where credit granted is absorbed by a black hole called public sector?

In a separate post, Guru notes the bank bailout bill was 219 billion euros.

Mike "Mish" Shedlock

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