When it comes to property development, Spain provides one of the best examples of how not to do it. A decade-long construction boom has left the country’s forty-five unlisted savings banks, or cajas, in dire shape (“Savings and Groans,” November 21, 2009). Mutually owned and controlled by a mix of depositors, employees, and all-too-eager local politicians, they currently own fifty-six percent of Spanish mortgages. Loans to property developers make up around one-fifth of their assets. Now that the construction boom has turned to bust, as witnessed by myriad see-through buildings across Spain, the cajas are in serious trouble. They are facing paralysis. Perhaps the best that comes out of this mess is a cautionary tale for any country contemplating Spain’s model in future. Unbridled, property development is pernicious. Promoted by local politicians, who tend to keep their sticky fingers in both planning and financing decisions, property development is even worse. And the ownership and control structure of cajas is the key to calamity.