Redenomination risk in Spain causes bank deposit run as house price slide accelerates

Quick post here to highlight then continued losses in Spanish property markets and the effect on Spanish banks. House prices in Spain were down 11.2% year-on-year in July. That's the largest fall since March 2011 and it brings all in losses since the financial crisis to 31%. That tells you that Spain's house price declines are in an acceleration phase, meaning that much greater losses are about to crystallise on Spanish bank balance sheets.

This is a real interlocking problem. First, the Span...


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