A bad bank for Spain.

An interesting article on Spain, about to re-emerge into the spotlight now that the lengthy election process is finally over, is linked here.

It seems the ghastly real estate situation might find a solution by the creation of all the unsaleable assets into a bad bank that will be forgotten about until some fluke comes along and waves a wand to make them saleable ( such as re-introduction of the peseta perhaps?) The following is a quote:

The BBC reports that “Spain is[a] much more indebted or leveraged country than Italy” when aggregating all debts including government, corporate, financial, and institution debts.

To fix the financial issues of Spain, Rajoy must conquer the seemingly insurmountable amount of troubled real estate loans held by the country’s lenders. The Bank of Spain stated that half of the 308 billion euros of real estate loans are classified as troubled.

Ever wondered what a "bad bank" is? I once had a money box as a boy, after losing the key I opened it by widening the narrow slit through which coins were intended to only be inserted, with a penknife, and completely emptied it, following which, it became useless. I imagine that is what a bad bank must look like!