Rising unemployment, high household debt, and a sharp slowdown in the property market has crushed economic growth in Spain.
The weightage of the Financial Services and Real Estate sector in the Madrid Stock Exchange General Index (IGBM) is 40.55% !!! http://www.bolsamadrid.es/ing/contenido.asp?menu=4&enlace=/ing/indices/igbm/igbm2002.htm
As bank lending tightens, large real estate developers could face funding problems and as the ‘sales slump’ continues, the meltdown could intensify.
Deleveraging is going to be a long and painful process.