Spanish Stock Market Cap Is Down 60% From Its Peak

This article provides a graph that shows the the Spanish stock market index has fallen by 60% from its peak in 2007. It is continuing its fall in recent months. The loss of wealth in Spain due to bursting of the real estate and stock bubbles is enormous. The unemployment rate and the loss of wealth in Spain is more like what occurred in the Great Depression. Even worse, the Spanish government has no control over monetary policy and the value of its currency. That is what it was like in the Great Depression under the gold standard. Moreover, the Spanish government is in no position to use fiscal policy to boost aggregate demand. On the contrary, the government has been required to cut spending.