What I mean by that is, if my house had been constructed of adobe originally it would be be worth $550,000. I knew that adobe was arab in origin, which makes me wonder how it got to this side of the Atlantic in view of the fact the indians were using it before Columbus arrived.

Salaries have not changed much with euro in Spain and within the EU. In fact, they have recently risen a lot compared with non-EU countries due to the appreciation of the currency. Now my salary might be interesting for a USA economist, whereas 3 years ago it would have been the equivalent of a junior one in the USA.

BUT what has realy happened is a huge rise in inflation, partially (its minor part) included in official statistics, like in food, transport, taxes, etc..., and a rise NOT included in official statistics, like housing, wich almost doubled housing prices in three or four years.

These crazy prices are the result of:

-The Town Councils' way to finance their uncontrolled expense: best salaries in the Public sector, and continuous renovations of streets, roads and squares, usually to become worse (they spend our money this way because the majors/parties of the majors get an illegal percentage).

- The speculation Town Councils make of the part of the floor they receive for parks, etc., in the new urbanizations, that they sell to finance themselves, and they are interested in selling it expensive, so they manage soil prices go up. This also fincances parties and/or majors.

- The former government corrupted movements to enrich it's friends and themselves, like the high speed train Madrid-Barcelona stop in the middle of nowhere... Well, no, in the middle of nowhere BUT FOR Esperanza Aguirre's (elected Comunidad de MAdrid presindent - PP)family's huge property, with projected urbanization, and so many other cases. In Spain the big bucks are in STate, and politicians are vinculated, all parties, but some are more corrupt than others.

- The massive inmigration makes a big demand.

- As a result of all this, people has joined a kind of popular capitalism when you earn easy money by buying cheap and speculating with it, renting in the meantime, which would be fair with any good that's not for supervivence like housing or food. It's became like the Stock Exchange, and it's cycles have also became similar, now the Bear begins. This is additional demand, besides, as people is speculating, they don't care paying 300.000 euros for a flat that's worth 150.000, because they are sure they'll get 350.000, so the price skyrockets because of speculation.

- The former government also diminished the number of cheap houses that the State patronized, to a minimum, making people have to buy in the "free" market, and sending aditional demand to this one.

In truth, had I been member of the Government, and had I wanted to f*ck the citizens while I get rich along with my friends and finance my party, I hardly could have created a better plan. It's a masterpiece of econometrics to obtain the details requested: people poorer and yours richer.

No, except for some taxi drivers and maybe in some hotels ("Hostales", where you may bargain if you are a frequent visitor- I did it in Madrid, americans don't), and very few other places, you get exactly the same prices. Besides, prices are advertised in most places, and we don't get discounts for being spanish. What we do is find the better offer all the time, plus we are not so consume-oriented as you are, in some goods.

That's great! In som ecountries we have a bubble, caused by speculation, like UK and us, this has happened previously in Japan and Australis recently. But ours is even huger because of PP actuations, and now the obvious puncturee that will come when interest rates (part of the economic cycle) go up, that will probably happen under PSOE i sto blame of it's returning to old prices, making the people who got rich speculating to be as rich as they were before, in fact that's fair, if they like to play they have to take bulls and bears. Or people have to live under a bridge for them to have three or six empty flats to speculate? They can do it harmlessly with gold.

And this has nothing to do with the financial policies of this government that are being extremely better than the previous one, for PP has made not only the bubble but also raised taxes, lowered public investment in welfare and increased (hidden) deficit, which is a real record for a Conservative party, usually careful with monetary policy.

Besides, the interst rate, every average knowlegeable person in Spain knows, does no longer depends on the national politics but in the EU situation, for the interest rate used in mortgages is EURIBOR and depends of the EU Bank.

If I were generous, I would think it was lack of information on your side, but I know you, and guess it's PSOE bashing on your side, as usual, Fernando.

DD: People under 16.000 euros simply CNA't have a home, that's why they stay with their parents or share a flat, because, sadly, they can not afford 11.000 euros a year (cheapest one-room apartment monthly payment) to 25.000, or 6.000 to 12.000 rents.

Some of these, when they have the luck that they both work (long hours, underpaid, losing hours to get to work, no family life, ...), one of the salaries or more goes to pay for the monthly payments, while they live on the rest of the two salaries, a struggle. Many times they do this while staying at their parents because they can't do it any other way. For some people it's simply impossible because banks won't give them credit nor they would be able to cope with the payments if given. Those have to pay rents for all their life, and to afford them they have to live far, and "enjoy" long hours of traffic jams or inefficeint public transport with many line changes to get to work and back.

Since banks want to "sell" credits, and most people would not qualify, in here, they have been admitting almost anybody who have a payroll and even with a temporary job, and they make very generous estimations on the saving capacity of these low salaries. One more thing that will enworsen the bubble burst.

Well, what Filbert means is that there can be no construction in areas where the local and "comunidad" (like state s in USA) do not authorize, making it "urban" from "rural". This is followed by permission and/or contracts with the private companies to give services like gas, electricity. These are given by big companies, being only the water one semi-public.

That's the best instrument used for soil speculation that has made rich many majors. Before PP you could construct anywere not reserved for natural parks, ..., now, you can only build (except for farms and the like) where the Town COuncil allows you, and they'll get their share.

Yes, but most people doesn't want to live there, because of what MedicalMan said, it's a hell to come to town and back, and it can be pretty expensive too, if you have to use one of those (empty) PP alternatives to free roads that they want us to use and pay about 1 euro each way each day. Logically, they are almost desert and people keeps on jamming in the others, enjoying 1.30 hours to reach the town.