greek debt concern - be cautious this week., page-21

Hi Leapzig, in relation to Spain, note the following:

1. Whilst the official unemployment rate is 21% I can tell you unequivocally that the real unemployment rate is less than 10% - the industrial relations laws in Spain are such that it is very difficult to sack workers so employers are simply paying them cash and not putting them on the books.

2. Property - Yes property prices have gone down, but mainly in the south of spain - areas such as madrid, barcelona, and the north of spain have witnessed increases in property prices year on year for the last two years. In relation to property in the south - Russians have had the biggest exposure (in fact, the russians have illegally built thousands of apartments without government approval).

3. Spanish banks - have a look at Banco Santanders international website and you can read their annual report in English - Banco Santander is from memory the third biggest bank in the world (and sponsors of Ferrari in the formula 1) - they are going from strength to strength.

4. Friends of mine working in the banking industry in Spain - things are not so bad except for the smaller "cajas" which are similar to our credit unions.

5. Austerity measures - working very well in Spain.

6. Massive growth potential in Spain - having only been released from a dictatorship in the mid 70's, Spain still has many structural reforms to undertake - they are certainly moving in the right direction.

7. Spanish elections next year - there is no doubt that the current socialist government will be removed in the elections next year - watch for massive growth after a new government is appointed.

Torente