Housing prices in Spain - again (and mocking Zapatero)

And the housing market just keep acting as if they never had heard what our estimated president told CNBC already last September (link) (see minute 3:00).

This time it is Tinsa which seems to have missed Zapateros market-insight.

“El año comienza aumentando el ajuste del valor de las viviendas” - their report says, indicating the inter-annual decline to 5%.

So, how is this compatible with Zapateros message that the prices had hit the bottom in September and there were signs of increasing prices?

Cost of purchasing of houses

I have always thought that the taxes and other costs related to the purchasing of a house in Spain is bad for the mobility.

If, for any reason, a family want s to move to another city or area, but  keeping the same level of living, one would think that the income from the sold house should cover the cost for the bought house....
However, that is not so, as the state and other involved agents, will claim their part (for instance a 8% tax, sometimes, erroneously called "VAT" of the value of the house). Totally, the cost for moving from one house to another (with the same characteristics) will be around 11%.
Having in mind the prices for Spanish houses, that is a lot of money... No wonder that, many times, it doesn't make sense moving to get a new job.
Also, no wonder that Spaniards talk about "A-money" ("white" money) and "B-money" ("black" money), when they talk house transactions.

The responsibility of the companies

Interesting poll on different countries view on which is the main responsibility of the companies.

The poll is based on a statement of Milton Friedman, an American economist who stated that "The Social Responsibility of Business is to increase its profit".

In Spain around 30% of the questioned persons agreed with the statement (either "strongly" or "somewhat"), the lowest percentage of the 23 included countries.

In Sweden 60% of the questioned persons agreed with the statement, even a little higher than USA. The theory of "The Economist" is that "Perhaps people feel little need for Corporate Social Responsibility when the government cares for them from cradle to grave."

Maybe that's true... but maybe it is also true that Sweden is a small country which depends heavily on export, and the relation between "healthy companies and welfare" is understood.