Crisis 2.4: Let's value companies fairly

In the ".com" bubble eight years ago, Terra was worth more than Repsol, something that defied common sense, and so it was, it bought Lycos for a billion pesetas and this past week it closed Lycos Europe.

In recent years we have seen how not construction companies, but real estate companies went public and climbed positions to get into the Ibex 35, we have also seen how these companies bought large share packages of energy companies, yes, they bought them on credit, like almost everything else because they were, and are tremendously leveraged, but as housing rose to more than 10% per year, it was worth everything.

Now it is going down, and construction companies are in the hands of banks that gave them so much credit, and watch out for some of those brick-addicted banks.


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