The bursting of the speculative bubble in the u.S. Real estate market is weighing on the u.S. Economy and was one of the causes of the recent turmoil in world financial markets
Since "black tuesday", 27. In the wake of the global financial crisis of february, the most important international stock indices have taken a dive, and a price recovery is taking place only creepily, if at all. The massive price losses on the world’s financial markets have often been portrayed in the local press as a mere "price correction" that is not based on any fundamental economic aberrations. At least in the case of the usa this is not the case, the most important economy of the world is visibly slowed down by the bursting of the speculation bubble on the us real estate market, which has been growing for years, a recession seems to be quite probable in the meantime.
This downturn of the u.S. Real estate market, which is gaining momentum, is now destroying millions of lives of american burgers. According to the latest statistics, 1.2 million mortgaged homes were subject to foreclosure in 2006. Compared to 2005, there has been a 42 percent increase in total foreclosures in the u.S. At the beginning of 2007, the number of homeowners unable to shoulder the debt that comes with buying a home jumped again: 19 percent more homes went into foreclosure in january than the previous month, meaning that more than one percent of all mortgages in the u.S. Are now defaulted on.