by Bill McBride on 6/24/2011 05:31:00 PM
Friday, June 24, 2011
Oh my ...
From the NY Times: Overbuilding in Spain Leaves Many White Elephants
Last March, local officials inaugurated a brand new airport in Castellón, a small city on Spain’s Mediterranean coast. They are still waiting for the first scheduled flight.That made me laugh ...
Castellón Airport, built at a cost of €150 million, or $213 million, is not the only white elephant that now dots Spain’s infrastructure landscape. ... Across the country, nearly empty toll roads are struggling to turn a profit. Other projects are surviving only with continued public financing ...This sounds like a classic bubble attitude: "Build it and they will come". Just a reminder that during a bubble, every project seems to make sense ... on paper.
Posted by Bill McBride on 6/24/2011 05:31:00 PM