1/4/11 "Espana"

We had our second day at IQS today, taught by an economics professor at the university. In a number of words he outlined the crisis that Spain is currently in. Spain's market dropped by 17% in the previous year, the 4th lowest in the world for 2010. This is contrasted by Asian and South American markets who had vastly outperformed European markets, the highest, mongolia. Saw a market increase of over 170%. This shows the increased investment in marginal economies.

The reason that the Spanish economy is doing so poorly is because it is based mostly in Construction and Tourism. Both of those took a major hit with the recent recession. People are unwilling to spend money on trips if their economic future is uncertain and credit is no longer easily available. Past credit terms made building projects possible which in normal circumstance would have simply been turned down.

We the went to visit the bank la caixa, learned about the causes of the sub prime crisis and ways in which the European Union, Spanish government, and the bank itself are dealing with the recession.