Saturday, September 21, 2013

The yard is on fire

Unsurprisingly, the yard was full of straw and dry debris and searing heat . Now nobody knows how to turn it off because there is very little water in the house , just a few buckets that are committed to the garden to save some of the very poor harvest. The surrounding neighbors have wells , but never gave them permission to extract from them a single drop of water. And not because they are bad people or unsupportive , no, but because their crops , and therefore their survival also depend on what is in those wells. The drought in the region for five years , and cruelly dented the welfare of families in this area , more and more poor , on the outskirts of the big city .

How is it possible that Cypriot owners of this farm have allowed such an accumulation of dry straw and debris in his yard ? Did not they know that an accumulation of that size was reckless ? It was only a matter of time that caught fire and endanger the other neighboring farms . The flames can reach a wingspan that with the strong wind and the dryness of the atmosphere , can easily spread throughout the periphery , threatening even some neighborhood of the capital. The Cypriot farmer has thought of all possible options , and has called for a Russian acquaintance who has a big pot of water. But this is not what is making it easy and want to take advantage of their desperate situation : He has hinted that a change of water trucks take it to establish a nightclub , a brothel , at home , by the corral , and that the young farmer's daughter serves drinks at the bar . The farmer is distraught face , but for now are still arguing over the phone and neither has hung .

Alternatively , the other farmers , the mayor, the sheriff and to the very minister discussed in the capital , so crazy and screaming like so many previous occasions , the measures to be taken . They run in all directions, like a anthill in a state of emergency . Bringing water from the town center to outlying farms is not viable , since the mayor refuses point blank to spend their water resources off the miseries of the periphery. The alleged to have amassed so negligent , careless and reckless in their dried droppings playpens are a tinderbox today . And not without reason . But the fire is still burning and flames and quite visible from the capital .

The fire is unforgiving , and the laws of physics , such as the market , are relentless . Some farmers blame the damn fire the damn drought, damn damn mayor or minister, ignoring their negligence and that the weather conditions are the same for everyone in the city and the outskirts . Maybe that's the problem. The city dwellers enjoy a dry, warm and sunny in their pools , because its flammable products are well distributed , stored, controlled and provided with a fire extinguisher handy. But in the suburbs, with their bad habits and lax , need another wetter climate . A climate that does not threaten their miseries heaped in their playpens and allow them to survive long term , despite their bad habits.

When farmers moved to settle in the periphery of the city, believed that everyone would benefit from this proximity . They believed that everything would be advantages , like going to the cinema in town on Sundays , shopping , and some did business with the city sightseeing visiting their farms from time to time . But did not consider the disadvantages : The hot and dry climate of the city perjudicba its agriculture , and fewer farmers could afford to go to the movies or shopping in the city.

What advantages does so for those families have moved to the dry climate of the periphery of the big city ? And what advantages available to citizens outside to have some farmers that require them extremely dangerous water to quench your fire ? It is true that farmers bought in enterprises of the city their agricultural tools , but increasingly have less money to spend in the city . And it is also true that for a few years, residents of the capital to the periphery could go to buy local products. But today the risk of fire spread throughout the periphery , which could also reach some areas of the city , and generates too many tensions between them . Perhaps , in a fit of unprecedented determination , the Cypriot authorities the farmer banished once the fire has consumed his house , but that does not prevent other neighboring pens catch fire soon. It is only a matter of time.

Today no one knows how it is to fight fire Cypriot farm or may take much longer to get the water to control it (and no one wants to turn it off) , and it is not known if it will be time to prevent its spread to a neighboring farm . What is certain is that it will not rain and the weather will torrid . By the time the yard on fire doors remain closed for the past 5 days to contain a blaze unnecessarily higher each passing minute . Because they know when a yard is closed , but you never know when it will open . All have in mind an old Argentine farmer that something similar happened , but nobody wants to talk about it now . At the end of the day , despite the fire and destruction , the aesthetics of Mad -Max still remains something away from this metropolis and its periphery .

The 2 big lies of Montoro on the new tax on deposits

Well as we know details about the new tax " Montoro " which will tax bank deposits. Come straight to the point :

1) You have no collection effort , for that the tax rate set to tax banks by deposit volume and move between 0.1 and 0.2 percent , sun type " very moderate" for this tribute .

    Comment Gurus : In November of 2012 the volume of deposits in Spain was 1.47 billion euros. Aplicad between 0.1% and 0.2 % and it will leave the state with this tax raise very moderate rate between 1,470 and 2,940 million euros extra. Not bad for being a tax that has no tax collection eagerness

2 ) No tax on depositors , nor is it going to be , but it is another tax on banks.

    Comments Gurus : Let's see , maybe the citizens if we are foolish , but the banks I'm afraid not . Net profit of the whole Spanish system in Spain in 2011 was 5,351 million euros. ( In 2012 has been extremely low by Bankia ) . Does anyone believe that the banks are not going to pass a tax to customers that they can get to eat up to 55 % of profit generated in 2011 ? Well obviously not believe anyone , so you can go and as I prepared to see a little increase fees or you fall a little return on deposits. I hardly will notice , but at the end of the year, Volya , between 1,470 and almost 3,000 million euros to be flown out of the pockets of depositors to state coffers and collected by banks.

How we told you yesterday , I'm starting to prefer being Cypriot and I stick a saber of 6.75 % once, to be Spanish and I might be cooking like a frog to put that in a pot and go up little by temperatures slightly not notice that being cooked alive and jumped .

87% of Spanish savers prefer advice in bank branches

The 87% of savers resorted mainly Spanish bank office last year for advice for their investments, compared with 54% who did so in 2011, according to an opinion poll by the Institute for Market Studies (IEB) and Inversis .

The study, which is included in the annual financial advice, shows that 97% plus of the Spanish resorts to some advice when making decisions about their money, and in most cases, that is, the two-thirds going to do more than one type of advisor.

According to data obtained by the IEB, 36% of respondents with more than 20,000 euros available for investment uses a unique method of counseling, 25% used two methods before making an investment decision, another 25% use three views and only 10% using the four methods discussed.

The Basques are those who maintain strong relationships of trust with their financial advisors, as the study points out that 23.8% confident "long, fully", while 42.9% expect "pretty heavily". On the opposite side is Valladolid, where 42.9% of savers say they do not trust "nothing at all".
Comment Gurus:

'After the preference shares, subordinated and other crap, 87% still in his office advise among bank? Sometimes I think that we deserve what happens to us.

Did you just hire ADSL ? Put an alarm within 1 year if you happen to pay double

ADSL ads are not transparent in their pricing, and easy to understand. Besides, the most attractive offers apply only for a few months , usually twelve so that after this first year the bill may increase by 80 % . What to do to not overpay ? Be informed to take control of the situation.
1st maneuver

When an operator informs us their charges for ADSL, usually through a large number of very visible in their propaganda . For example , ADSL + Mobile = 19.90 euros . But this figure is not the total of what you pay but only DOWNPAYMENT ( 1).

To find out what we will pay in total will still have to add :

    (2) REGISTRATION FEE , between 0 and 30 €
    (3) ROUTER PRICE generally 0 €
    (4 ) FEE ONLINE , between 13 and 15 €
    ( 5 ) VAT , currently 21 %

For example , this month the offer Jazztel Savings Pack 100 offers :

Make this calculation for each offer that interests us before hiring is essential to choose well.
2nd maneuver

But we still will be another maneuver to do to avoid losing money : not to stay longer than the duration of the initial promotion , ie go before the quota runs low. As Olivia explains Feldman , co -founder of HelpMyCash :

    " The operators exploit the passivity of many customers to increase fees up to twice , once past the initial promotion . In addition , the user must remember that companies with lower initial offers are the more their prices rise after "

Thus, it is a matter of being attentive to the end of the first term ( using electronic alerts , for example) and use a comparator ADSL to know what our next operator before they change rates.

Otherwise, very cheap deals first as Jazztel can go from an average price of € 30.17 per month the first year to € 54.33 after . In the case of Vodafone , after the first year is spent € 14.9 to € 24.9 . With Orange , you go from € 11.95 to € 25.95 . In the case of Ono , the shift is from € 19.9 to € 31.9 . And Movistar , which would generally be the most expensive , would have the least difference : € 29.9 € 34.9 once after the first year . *

This means that after the first year , Jazztel increases its share to 80 % , Orange 52% , 43% Ono , Vodafone Movistar 33% and 11%. It then checks that it is a practice carried out by the five major carriers in the country and that companies with more attractive offers are those who suffer the greatest price increase after the first year of contract.

* Offers are Jazztel ADSL compared to 30 MB, 20 Mb ADSL Vodafone , Orange ADSL 20 Mb, 30 Mb and Ono Movistar Internet VDSL 30 Mb

The price of housing in Spain is overvalued by 15 %, but could fall to 35%

The price of housing in Spain continues overvalued by at least 15 %, but could fall to 35% , according to a report by the Economic Situation Observatory (CEO ) of the Instituto Juan de Mariana on housing prices and rents .

The OCE first calculated in 2007 the magnitude of the ' housing bubble ' in Spain and concluded that housing prices were overvalued by 40 % .

From the highest point of the ' bubble ' , housing prices have fallen new construction 24% , " so that if in 2007 it was necessary to adjust prices about 40 % lower in 2012 that margin would have been reduced by 15 %. "

According to the Institute , the " slow" price adjustment can be attributed largely to a "late , ineffective and misguided set of policies to hinder rather than accelerate this process ." For the center , the strategy followed by the banking sector is "particularly detestable " .

"Although progress has been made in this regard , the fact is that , on the one hand , are incomplete and , on the other, disappointing , for example regarding the Sareb " he asserted the institution , which considers that the ' bad bank ' seems to be having an opposite effect , " because instead of acting as a catalyst for market , accelerating the price adjustment , is serving to the contrary."

The CEO has highlighted in its report that the "slowness " of the Spanish setting contrasts with the "fast" setting other European countries also experienced ' real estate bubble ' as Ireland, where prices have fallen more than 50% from their highs .

Comment Gurus :

In respect of housing prices I recommend watching this video in which Borja Mateo ( an industry expert ) gives his opinion without mincing words about what you expect to happen to the price of housing in Spain

Saturday, September 14, 2013

Holders of preferred stock will suffer BMN remove up to 60 %

Holders of preferred shares of Banco Mare Nostrum ( BMN ) suffer remove up over 60 % according to the hybrid resolution plan that has generated the Fund for Orderly Bank Restructuring ( FROB ) .

In addition, the FROB said considering the negative net asset value of the entity, which is estimated at 12.378 million euros, and the total nominal value of outstanding ( excluding own portfolio balances ) of hybrid capital instruments and subordinated debt amounting to 449 million euros , the amount they will receive the headlines is also "superior to what they would receive on a liquidation scenario .

Specifically , BMN buy back their preference share issues with a take off from a range of 27.1 % and 60.7 % , depending on the issue, which pay cash for immediate subscription and payment in new shares of the entity. This will cut up to 70 % in case of an FGD emission Caja Granada , according to the agency led by Antonio Carrascosa .

In the case of perpetual subordinated bonds will take them off from 70 % to almost 38 % , while for term subordinated debentures with maturity date prior to January 1, 2016 , there will be a rebate of 10% and reinvest cash amount in a bank deposit.

The FROB controlled entity shall be a capital by a cash amount of EUR 347.89 million to meet management action hybrid capital instruments and subordinated debt through the issuance and circulation of 259 , 62 million shares of EUR 1 par value of 0.34 euro premium.

BMN aid received by 1,645 million euros. Specifically , received 915 million euros through the issuance of convertible preferred shares subscribed by the FROB , whose conversion occurred on February 19, 2013 , and another 730 million euros through a capital increase subscribed also by the FROB .

Banco Mare Nostrum ( BMN ) , is society, born in 2010 , which forms the SIP of the merger of four savings banks : Caja Granada , Caixa Pened├Ęs , Sa Nostra and Caja Murcia .

This is the detail of the cash amount to be received by holders of preferred shares as consideration for the mandatory repurchase of its values

Mortgages . Falls the number , amount and falls are more expensive

The number of mortgages on homes reached a new low in March to stand at 16,270 , down 34.1 % from the same month of 2012 , according to figures released Tuesday by the INE .

The annual decline in March, with which the mortgaged strung and 35 consecutive months of decline is much more pronounced than in February, when the mortgaged homes fell 7.5%.

In addition , the total number of mortgages on homes ( 16,270 ) is the lowest in any month in the comparable historical series , which began in 2003 .

The tax benefits associated with home ownership ended on January 1 and that has affected housing sales operations , which have come back negative and , therefore, the number of mortgages that are on this types of properties .

The average value of the mortgages on homes reached in the third month of the year, 96,676 euros, 6.7 % less than the same month of 2012 , while the borrowed capital was reduced by 38.5 % year on year , to the 1572.9 million.

In monthly (March to February ) , mortgages on homes fell 32.8% , the largest decline in the past five years. The capital borrowed for the mortgaged recorded a monthly decline of 37.2 %, registering also its biggest decline since 2009 .

In the first quarter, the number of home mortgages accumulated a 17.5% decline compared to the same period in 2012.


The average interest rate for residential mortgage loans was 4.49 % against 4.33% a year earlier .

According to INE, the average interest rate on mortgage loans of savings banks was 4.68 % and the average term of 20 years . As for banks , the average rate was 4.64% and the average term of 21 years.

The 93.8 % of the mortgages in March used a variable interest rate , compared to 6.2 % fixed rate. The Euribor is the type of reference used in the creation of adjustable-rate mortgages , specifically 84.1 % of new contracts.

For mortgages with registry changes , in March totaled 22,628 , representing a decrease of 13.1%. In housing, the number of mortgages modified their conditions fell by 9.7 %.

Considering the type of change in conditions , in March there were 18,415 innovations (or modifications within the same financial institution ), with an annual decrease of 15.8 %.

The number of operations that changed entity ( subrogations creditor ) was 3,464 , or 18.8 % more than in March 2012. Meanwhile, in 749 mortgages changed the owner of the mortgaged property ( subrogations debtor ) , 40.7 % less.

Of the 22,628 mortgages with changes in their conditions recorded in the property records for the month of March, 39.8 % were due to changes in interest rates. After the change of conditions, the percentage of fixed-rate mortgages fell from 5.6 % to 3 % , while the rate mortgages increased from 93.7 % to 96.4 %.

The Euribor has the largest percentage of variable rate mortgages , both before and after the change . After changing conditions, the average loan interest on fixed-rate mortgages fell 0.43 points and in the case of variable rate mortgages fell by 0.72 points.