The crisis has volatilized the wealth accumulated by families in the last decade. Only in the last five years have they lost 180,788 million euros. This situation has aggravated the so-called ” poverty effect ” that is weighing like a slab on consumption. Only in the first quarter the income obtained by VAT has fallen by 9.1%. This situation is what explains that the Government has foreseen that the national demand as a whole will decrease by 4.4% throughout the year, a scenario typical of a double recession in which for the first time the Spanish economy has submerged. The Stability Plan foresees a change of situation in 2013, which would allow the economy to grow again.
The net financial wealth of the families, that is, the difference between the savings they accumulate and the loans they have granted, was reduced by 4% in 2011 and stood at 786,359 million, according to the financial balance data of the corresponding families to the third quarter of 2011 that includes the Bank of Spain. This means that it has been at the same level it had in 2003 and assumes that 180,788 million have been lost since the crisis began in 2007.
The financial assets accumulated as a whole by the families have been reduced by 181,079 million, since they stood at 1,718 billion in 2011. This means that, due to the losses, all of their investments in the stock market, investment funds and pensions are at the level they had in 2005.
But where families have lost even the shirt has been in the bag . They have almost half of the money they had in stocks at the beginning of the crisis in 2007. Their 799,253 million shares (excluding funds) and other participations such as shares issued by investment funds and shares managed by investment companies have been reduced to 463,977 million. Only listed shares have lost 63,571 million, since their investment has been reduced to 85,860 million. To have an idea of the volume of money they have lost, this is an amount similar to the one they had invested in the year 2000. This represents a spectacular reduction of 43% since the highs of 2007. A fall that obeys more to the loss of value of the shares in that time than to the exit of money itself.
Far less profitable has been the investment in the shares issued by investment funds , which have been reduced by 86,277 million in these five years of crisis and have remained at 109,287 million.
These losses seem to have been better managed by pension funds , since losses have been limited to 4,886 million. The savings they had accumulated to complete the pension they will receive from Social Security has been reduced to 106,471 million, the level they had before the beginning of the crisis, exactly in 2006.
The continuous swings of the stock market have been changing the habits of families, who have chosen to have their money in cash. The deposits have reached a record figure of 857,070 million euros. High yield deposits remain close to 458,000 million. The figure has not stopped growing in the last seven years. Since before the crisis, family deposits have increased by 25%. Many families have opted to invest in fixed income , assets that have increased by 13,500 million since the crisis began. The total volume already rises to 62,686 million. Data from the Bank of Spain indicate that the process of debt reduction of families is very slow. The total volume of its debt stood at 932,357 million at the end of 2011, barely 291 million less than at the beginning of the crisis. The figures indicate that more short-term loans have been canceled (they have been reduced by 9,330 million) than in the long term (they are reduced by 7,809 million).