A FINANCIAL REFORMATION OR A CAMOUFLAGE OF REAL ESTATE DEBT

Already comment yesterday that the financial reformation approved by the council of Ministers, looked like each other more a lid that a reformation, today after analyzing the data and comments written in the national economic and journalistic means, I confirm myself in my sensation, the reality is that a financial reformation has not been made, what has been made is an exercise of financial engineering to cover the reality of a debt disaster accumulated during years, giving him a form of financial adjustment so that it sounds better and present in front of the public opinion, an image of punitive reaction against the bad agents that have brought us until the situation of I hurt economic in that area.

A financial reformation, it should be something that has sat down new performance norms for carrying out the administration of the finances in Spain, marking and ruling, new performance forms to the banking, to the control of the public investments, rules of fixation of interests to the capital, rules for concession of credits to the consumption and the industry, and mainly a rule so that never more can bolt a sector like you bolts the real estate one, to which were granted all the national economic resources in form of credits, with the erroneous illusion that we would multiply for I don't know how many times the capital that you mobilizes.

 

The banking certainly in this case, I sin of greedy blindness, because nobody in their healthy trial puts all the eggs in the same basket, and the banking made it, the bad thing is that the eggs were mine and those of all the Spaniards, the government, the Bank of Spain, the ministry of economy and country property, that of industry, nobody saw it or he didn't want to see it, but the reality is this the whole Spanish economy he went to the real estate hit, and this ball continues today in day bouncing and bouncing without nobody can stop it, and to each boat he goes damaging the fragile stability of the Spanish economy.

For this reason the PP has created two ministries of economy, one so that it governs the real financial resources, that is to say the country property ministry that will work with the hard reality, the taxes and the expenses of the state, said the agent of the national budget otherwise. And the other one, the ministry of economy and competitiveness whose mission is to camouflage with the application of traps and fiscal malabars, the debts that sink us to the well of the community economy.

The first performance of this ministry, is this reformation that consists on changing name the debt accumulated in the Spanish banking, passing it of debt garbage to: Special provisions of capital guarantee base, renovated and contained in phases of financial concentration among entities of smaller quantity, equivalent to the importance of the capital undersigned in the formation of entities unified clerks of the FROB, and of the variables accumulated during the mobile effects of the Spanish economy. Total continues with 170,000 irretrievable millions but already nobody knows where they are.

 

So that there is a palpable aspect and that it pleases to the society, the only thing that we understand is really that they are removed the astronomical salaries to fatuous and incompetent agents of the banking that above taking us to the ruin national part of this ruin this in their pockets or in fiscal paradises you go that is, I find the only good reformation that this law approved yesterday it takes I get, the pity is that it is not retroactive, and also force to return all it presumably stolen in form of salaries funds and other countable tricks, carried out during the last five years at least.

What I worry about now is that all this moved demagogic, it won't provide any work position, but just the opposite, with that which still gets worked up me but the lid that the PP is putting above the debt filthiness and imbalance of the Spanish economy, the only thing that saves them, is that in these moments they cannot be made responsible directly of this offense, but this won't last them a lot because they can no longer pass the time in changing name and of place the bad things that inherited already have to begin to create new solutions and new elements to begin to reactivate the real economy.

I believe that the reformation that we are commenting won't provide neither credit, neither I use, on the contrary, the bank restructurings will produce more clear unemployment, and to me I am happened an idea, they will already be recognized the of the real estate debts, now they leave to provisioned and they will be the banks in disposition of almost to sell the real estate assets to bargain prices because indirectly they will have the economic resources in their safes, very coming from credits of the FROB or for their provisions internal etc. But while there is not reactivation, these assets won't put on to the market, because the sale of the properties that they are formed them didn't activate, since every time there will be less people able to obtain a mortgage, with the one that to go absorbing active and for consequence liberating economic provisions caught in the banks. 

This situation can last as commonly it is said “Christ's years”, said but scientifically an indefinite time, and that it doesn't depend alone of Spain, but of the European reactivation. My reflection is the following one: if it is clear that the problem of Spain is the real estate debt, the unemployment, and the budgetary deficits, but not the sovereign debt that is of the lowest in Europe, because we don't make an I authenticate "Plan Of Development" to the style of those carried out there in Spain by the years 1965/75 and we finance them with public debt, that if presenting an I authenticate study of viability and clear objectives to the European commission that authorizes it, I believe that it can be justified that controlled the banks and its debts in concretes up to now, and controlled the budgets, Spain has capacity of indebtedness in the debt markets, to obtain financing to carry out an I authenticate Plan of industrial Development, to absorb the last and harder of the plagues that we suffer the unemployment.