Spainistan, from the Spanish Building Bubble to the Crisis (by Aleix Saló) - (English Subtitles)

Uploaded by rebecafm on 30.05.2011

Spainistan(1) Presents
The Spanish Housing Bubble (by Aleix Saló)
2011 Spain, after the mother of all parties is waking up to a huge economic "hangover". The country is fucking fucked
(Spain) - arghhh... (narrator) -but .. how... did we get here?
(Spain) - oh well... (narrator) - don't you remember anything?
(Spain) - ... no! (narrator) - I'll refresh your memory..This story I am going to call..
from THAT CLAY COMES THIS MUDDY MESS swallow brick! swallow!
1998, PM Aznar(2) is on his way to play tennis when... the God of the Neoliberalism(3) reveled to him...
The new Land Law (land for real estate development)
The law proposed to privatize the land market; it was copied with enthusiasm by local & regional authorities of EVERY political party
The formula was simple; if we increase the land that is available for development, and we convert the housing development in a profitable business for entrepreneurs,
the investments will multiply, more houses will be built, and as there will be more supply, prices will drop down and young families will finally afford a home
and so it was.. The dream became a reality and we all lived happily ever after in SweetyJellyLand
okay ... maybe it wasn't exactly like that... Let us go until 2002 by then the building pace was increasing
The same year, PM Aznar, has yet an other revelation from his Yuppy God; The Labour Reform
The tactic of this reform was familiar, if we reduce workers rights we can make contracts more attractive to further employers,
these will invest more in staff and so we'll reduce unemployment
from that moment the demand for manual labour was triggered and thousands of young ones left their studies to take jobs within the construction.
so did also thousands who came from abroad (- me love Spain)
and they all joined the happily dogma of The Spanish Way of Life "to buy a house"
Housing Was Hot Buy an attached house & your in-laws would die of envy!
Don’t be a cheap hippie who rents, instead, invest in bricks and you would deduct taxes too
Problems with money laundering? don't worry, real estate will "clean" your fortune
Unfortunately the Land Law did not have the predicted effect.
as the demand for housing increased, the prices went up
These also trigger the land's price (because it was sell in function of its benefits)
which added even more cost to the property final price
It goes without saying that this margin of benefit attracted thousands of sympathetic speculators
Housing prices boiled in just four years
if we go further till 2005, the bubble was already unleashed
and Spain was developing more properties at year than France, Germany and Italy together
let's see ... this beach is missing some good atmosphere .. That's far much better!
and what an idyllic forest? oh such a cute squirrel... fuck off squirrels! and say "Hi" to progress!
Construction was the engine of our economy, everyone talk of the Spanish economic miracle (PM Zapatero(4) - We’re in the champions league)
Then someone said - and what if we use the surplus to invest more? - buhh!!, - go home!! – buhh!! - shut up!!
So it was our economic miracle, while the benchmark for American employers was Google, here everyone wanted to be Paco el Pocero(5)
and then.. house prices skyrocketed - Ok.. but at least we had jobs
True, unemployment had fallen to a new record low
But while real estate had been more than doubled its price, wages were more frozen than Waltz Disney(6)
being in the greatest period of prosperity in our democracy most people earned a SS also known as SHITTY SALARY
- But... if housing is more expensive and salaries are the same, how come we can afford to buy a flat?
- well.. here is where you’ll find "YOUR FRIENDLY BANK"
(Fishy Banking - Galore Mortgages) Banks and credit unions didn't want to miss the party and start lowering the requirements to grant credit
- hello I earn a Shitty Salary and my endorsement is a turtle with cap (mortgage granted)
do not worry, we'll stretch your mortgage up to 40 year so you'll be able to cover the fees ...
and in the event you could not afford to pay the credit.. well.. as house prices will always rise ..
you can always sell the house .. recovering your investment & even earning money! profit!
Remember.. real estate value ... never drops
We’ll puff up your credit... so you could also afford a big car, a cruise holidays, a flat screen TV and a Smartphone with wifi as well
and so it was for the very first time ever that on a SS (shit salary) you could live FG (fucking great) (- I'm rich)
In 2007, we'll see a dantesque panorama(7)
The debts of governments, families, businesses was enormously huge
as it was no less enormous the debt among other banks and financial identities
The entire country had kidnapped the futuristic girl(8) and forced her to bring more and more money from the future
in other words it was NOT our ability to create wealth that was bringing growth,
but instead, the engine of our wealth, was the growth itself and growth was only able to exist from our debt.
2008, housing was so expensive that some people would have to mortgaged 40 years to live in a zulo(9)
(PM Zapatero sweating) Someone had to stop the madness but no one knew how
Spain, as a whole, was like the Titanic's orchestra(10) playing without interruption while the ship was sinking
Until finally, the credit bubble erupted in the U.S. spreading rapidly around the world
(fishy banking - you talk we don't listen) Overnight, banks stopped lending
investors stopped buying debt and the panic was unleashed
as no one would lend money, there was a domino effect, consumption slumped, the economy shrank,
companies started mass layoffs, unemployed families were evicted from their homes for nonpayment
suddenly we had arrived to "that" future from where we have been stealing money
and we discovered that we were broke, or what is even worse, that we never stopped being poor (spare change)
and perhaps this was not Spain but Spainistan
the story continues in Spainistan this country is going down
and in