Mortgage promotions

We went by the bank (in Madrid) this morning and on the way out I picked up a pamphlet promoting housing mortgages. The pamplet states:

• 1.875% first 6 months, after 7 months euribor + .037% up to 80% of property valuation
• Euribor + .59% up to 100% of property valuation
• Length: Up to 40 years
• Etc.

Ok, so basically the banks in Spain are still doing the same things that got us into the housing mess. Still offering loans up to 40 years? Do people still want to acquire adjustable rate loans, haven’t they learned their lesson?

And the bank is still offering 100% of the home valuation. Isn’t part of lending money to responsible people being sure they are capable of saving some of their own money to put down?

This really leads me to believe that the report I mentioned in the previous posts is correct. Spanish banks are in trouble and are desperate to liquidate their growing stock of repossesed homes.