Crisis Española )Ingles)

INTERNATIONAL FINANCE: SPAIN CRISIS.

1. CRISIS ORIGIN.
Spain crisis started in 2007 as a result as International economic crisis lived in USA in the sameyear.
After that Lehman brothers Bank and others important Banks from USA when down, the economic world situation were very difficult for a lot of countries,especially for European Monetary Union and Spain.

But, why especially affected to Spain?
Because, before 2007 economic crack, nobody thought about the Spanish bankssolvency, but a lot of time ago, those banks gave a lot of loan to everybody, who couldn’t give back.

Moreover, the people who couldn’t give back the loan bought manycars, flat, or another things that really they couldn’t buy.
How the construction business saw that everybody could buy a flat, they they decided build massiveflat, and started the construction boom.

Finally, when USA crisis started, Spanish banks though about their solvent. In this moment the banks believed that theydidn’t have solvency and they decided to increased the interest rate.

Consecuences.
The people couldn’t pay these interest rate and consequently , didn’t get back theloan. The Banks seized flats which sold to these people.

Companies construction stopped and a lot of workers were fired, this is very seriously because in thismoment construction sector had a lot of workers and were are the most important sector in Spain.
--- Here we can see the graphic about employment in constructionsector.

Now social and economic situation in Spain is very difficult and very sad, because, we have high rate of unemployment and we are fail school leader.