The Spanish Property Crash – Who Is To Blame – Part 2

Do you recognise the lack of having learnt a previous lesson, removal of regulation, the sheer irresponsibility and the lack of attention to the clear warning signs?  This is largely what has happened with the economy – with the property market allowed to rise out of control like an unguided missile carrying a nuclear warhead.

None of us have a moral or intellectual problem with the imposition of traffic lights (despite disliking their inconvenience) if they prevent terrible and unnecessary accidents.  We expect and place our governments (locally or otherwise) under a duty of care to ensure that they prioritise our safety and well being.  Indeed, invariably, we elect our politicians on the basis of their claimed economic capability and tolerate any number of state financial regulations and impositions to ensure economic stability and safe growth.  So, there has been no plausible excuse for governments for not acting to regulate the availability of debt or and an out of control property market.

Unfortunately, during the past few years we have been governed by the incompetent – who have colluded in this mess together with their pulsilanimous FSAs, state banks and economics departments.  Their negligence has resulted in a situation of such gravity that most of us are unlikely to see anything so devastating ever again.

I can only hope that something will be learnt from this crisis – not least that a healthy, stable property market is fundamentally important to the economy and well being of any country.  As such, it requires real care and constant, professional attention – with the regulation of the availability of ‘debt’ being one of the most important controls.  As a government, if you allow debt availability and your property market to spiral out of control then you are no better than a knowledgeable bystander knowingly connecting a fireman’s hose to a petrol pump.

By Nick Snelling – Author of “How to Sell Your Spanish Property in a Crisis”

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.