La Crisis Economia: "La burbuja inmobilaria"

Spain is in a serious recession, it is all anyone talks about, and reminds me much of about 5 years ago when Michigan was in a similar one. In just three years, unemployment has risen from 12% to 27%. Kids are dropping out of high school to make money for their families, which results in a lack of education, which results in putting themselves in a terrible cycle of dead-end jobs. 1 out 2 people under the age of 30 with college degrees do not have a job. Things are not going well in Spain, and Portugal is even worse. Malta has been declared a failed-state.
There are a few reasons this crisis has occurred, no one in specific.

1. We are in a global recession, Spain is now feeling the effects of the US recession of 2008.

2. It used to be very easy to get a loan in Spain- you would go to the bank, get the money and build. People got too cocky with their building, and as inflation increased, people could not keep up. In Lagos, there were a ton of abandoned buildings. The banks had to come and re-possess so many houses, that they started failing. Three huge banks in Spain have already failed. The banks also started repossessing homes for the cost of colleges. Soon enough, banks were transforming into real-estate companies.

3. The change to the Euro.
In 2000, Spain converted to the Euro, a drastic change the country was not ready for. Before the Euro, the Spanish used Pesetas, and because of the change, major inflation occurred that can never go back down, which is why this recession will take so long to over come. The conversion was 1 Euro= 163 pesetas. There is only so much that you can do to divide one euro- because before a cup of coffee may have cost 60 pesetas. However, after the transition, cups of coffee went up to 1 euro, causing drastic overnight inflation. People's salaries were in pesetas one week and the next converted to euros and significantly less.

There are many more reasons that the Spain is in need of a bail-out, but these are the most common that I have heard. The level of poverty is terribly high, along with the homelessness statistic.

With this in mind, it is no wonder Madrid did not get the 2020 Olympic Games, and economically speaking, probably a good move. Japan's economy is surely strong enough to handle the games, their only problem is the space!