31.07.2008 - Middle Eastern real estate bubble trouble?
From Cpifinancial.net: There has been a lot of talk lately about a Middle Eastern real estate bubble. Is all the talk just a lot of hot air, or is there more to it that that? Warnings about real estate bubbles rarely seem to be out of the news as economists fret about consumers spending more than they are saving and governments grapple with inflation. However, most market watchers admit that they are now looking at a new type of economic phenomenon as the developed Western markets slow down and emerging markets hot up. Add a plunging dollar, soaring inflation, high commodities prices and a real estate boom on side of the world and a virtual economic collapse and investors are finding themselves in unfamiliar economic grounds. Fierce competition amongst banks and mortgage lenders in the US, Spain, Ireland and other parts of Europe led to consumers being offered mortgages under the most ridiculous circumstances. Some mortgage applicants could not even afford to put down a cash payment, yet were still offered huge loans that were well beyond their abilities ever to pay back..... Full Article: Source
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