That day the property sector as a whole had a fall occurring once every several years, of which usually announce the beginning of a great movement. It was a simple correction. Nor do I believe that the trigger was the initial fall Astroc as mentioned in many places. Astroc is a company that does not follow any analyst, not an activity is clear and understandable, that pays dividends and is considered very overpriced (75 euros PER2006 had a nearly 100-fold) for the vast majority of stock investors. Therefore, if most investors could expect that at some point suffered a sharp correction Astroc does not seem logical to think that this correction has caught them by surprise and reacted in panic selling shares in other companies that do have a clear activity, divided dividends were not so absurdly overvalued as Astroc.
I think the real trigger for the correction was the TVE program of the 100 questions, in which he said very clearly on several occasions that was to liberalize the ground when it came to the Government. Because for me, the real housing bubble began in the late ’90s, but the day someone invented one of the biggest scams of mankind; the urban rezoning. Not that the system encourages corruption rezoning is that it is designed specifically to enrich themselves through corruption. The land market in Spain (and in most countries) does not satisfy the laws of supply and demand (such as markets for apples, shirts, cars, computers, shoes, etc..) But the level of corruption and totally arbitrary decisions of a small group of people who decide where to build and where not.
| August 27th, 2019 | Posted in News |