 | US housing market crisis is turning into a global phenomenon 14-04-2008 In an article in the International Herald Tribune, Mark Landler illustrates
how the US housing market crisis is turning into a global phenomenon. Previously
souring markets in Europe such as Ireland, Spain and Britain are experiencing
major downfalls. Also Eastern European countries which Western Europeans used
to be eager to invest in, such as Poland and Estonia, are now facing declining
investments in real estate.
Landler states that to some extent, the world's problems are a result of
American contagion. As home financing and credit tighten in response to the
crisis that began in the U.S. subprime market, analysts worry that other
countries could suffer the mortgage defaults and foreclosures that have
afflicted California, Florida and other states.
"The problems in the U.S. are being transmitted to Europe," Michael Ball,
professor of urban and property economics at the University of Reading in
England, who studies housing prices says. "What's happening now is an awful lot
more grief than we expected."
However, the question how these developments will affect the broader fortunes
of countries in Europe and beyond, differs radically, according to Landler.
Source:
International
Herald Tribune
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