Global Housing Bubble and Its Effects

-predicted disaster, still unfinished

! What is Global Housing Bubble?
- Every newspaper or journal says that we are facing the biggest finance ever.
- General increase in house prices.
- houses are overvalued over the world.

! Why is it dangerous?
- After the prices fall, a huge problem is generated.
- Various after-effects(losing jobs, confusions)
- decrease in consumer spending; can be led to global economic recession.
- Case of Japan: suffered more than a decade for a recession generated by housing bubble.

! What is the cause?
- low interest rates : people are more likely to lend money, even subprime lenders.
- propensity to invest in real estates. (high stability)
- speculative hands

! A predicted disaster - bust of housing bubble
- Various magazines and newspapers, especially The Economist, warned the tragic consequence of the housing bubble.
- UN warned!
- Subprime mortgage crisis in America- stock of unsold homes.
- dire situation
- depressed consumer spending

! Why in America?
- big country
- numerous subprime lenders
- Crisis in the American economy = crisis in the global economy

! Outlook for the future
- America's resolution : lowering interest rates
Which is temporary, and has high risk of inflation.
- Over the world: serious problem. we don't know when the prices will fall.
- Slight hope for Asia : Anyway, should be careful
- Still Unfinished : the warning of IMF

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