The boom went bust in 2008, and banks incurred huge debts from badrealestate loans while the economy slowed, the jobless rate increased, and consumer spending stalled.
What we need is for the Fed and the Administration to unleash capital trapped in badrealestate to restart sustainable job creation and economic growth in this new, asset-light, Internet-based world.
Bankia was created just 17 months ago by the merger of seven regional savings banks in an attempt to shore up their combined defences against the badrealestate loans, worthless building land and unsold apartment blocks they had accumulated.