SEQUOIA

The Housing Crisis Goes Global

Vedy good and thank you for the great service that you provide.In response to the prices in Spain,they just as most of Central and Eastern Europe,are simply way overpriced.The belief was that they will sell anything that can be built,irrespective of price or demand is simply absurd.It is not only Spain that is riddled with the British and Irish INVESTORS,but also Slovakia,Poland,the Baltic states and to a lesser degree also Hungary and the Czech Republic are full of them.They bought full floors of flats in places like Bratislava,Warsau,Riga... inflating the existing price structures in a given location even before the construction has started.Now,in many of these places ,these flats are sitting empty.The prevailing wages in Central Europe are not all that high,purchasing power relatively low,so it begs for a question.Who is going to buy this overpriced edifices in a worldwide credit squeeze?Surely,there might be some buyers at a greatly reduced prices of said flats,but,the income is not there.As these Real Estate Bubles unwind one by one,we will witness a truly global disaster.Of course the RE agents in each of the Countries say,WE ARE IMMUNE from the subprime mess in America.Sure.Only time will tell.