The stories I have read about Spain are consistent on one point: massive overbuilding in real estate created a bubble that eventually led to the current depression. Architecture firms in Spain have reported 50% to 75% declines in revenue and a significant number of young architects are leaving the country. Statistics that are in line with what happened in the U.S. in the 1930's.
Because Spain is locked into the Euro they can't devalue their currency to make themselves more competitive. I also surmise that foreign banks who lent to finance the construction boom don't want to take a haircut on their stupid investments. Can they hold out till Doomsday to get full value back on their loans?
Lovely piece of architecture here. I'm not sure what it does, but I guess that's an apt metaphor for what happened in the country.
Note to blog readers: towers of ilium will be taking an edgier and more bombastic tone in the upcoming months. Stay tuned.
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