The Aftermath of the Global Housing Bubble Chokes the World Banking System
August 3rd, 2010The U.S. housing bubble was tame compared with several other ones around the world over the same period.
Via: Housing Story:
What our leaders are doing is correcting a severe cyclical recession. What our reporters are doing is covering a severe cyclical recession. What sublime kabuki theater.
Back in the real world, the destruction of debt required to cure a credit bubble hasn’t been done. That means the reason for the new credit crisis is no different than during that past time of fear and failure – except that now we have new magnificent malignant clusters of sovereign debt serving as a sort of hand-held fan covering the unclothed emperor. Does that count as cover?
There is a prism I use to see the world. It is in houses. Look immediately above to see housing prices acting strangely in many advanced economies (the global housing bubble chart). Let me tell what I see when I look at this: We had one wicked housing bubble in the United States, but apparently we were the conservative party poopers. It looks like the funner countries are Ireland, Britain, Spain, Sweden, France, Norway, Denmark and Italy.
Research Credit: Pookie
