DebtDeflationinSpain: Record 4.7% Decline inHouseholdCredit, BusinessLendingDown 10%
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Kiss any notion of a Spanish recovery goodbye.

Via translation, El Pais reports HouseholdcreditsuffersrecordfallinOctoberdespitetherescue.

Credit in Spain continues to show signs of weakness, year and a half after the Troika bailout.

Statistics from the Bank of Spain show that household credit fell 5.2% in October to 793.940 billion euros. If we look at the evolution of the cash flow of borrowed money, the net change in assets is a decrease is 4.7%.

In October, the credit borrowed to buy homes fell 4.7%, maintaining its rate of collapse, to 614.860 billion euros. Lending to businesses fell 10% in October, to 1.081 trillion euros.

In both cases, the amount of money borrowed is at its lowest level since 2007.

DebtDeflation?

Precisely!

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

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