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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: biometricgngboy who wrote (15146)	11/16/2003 8:44:13 AM
From: biometricgngboy	Read Replies (1) \| Respond to of 306849

Real Estate Market Likened to Pre-Crash Europe by Lee Sae-min The central bank warned Thursday that a downfall in the price of real estate, amid mounting household debts, could trigger a financial crisis similar to what happened in North European countries in the early 1990s. The Bank of Korea (BOK) said that three nations in northern Europe -- Sweden, Norway, and Finland -- brought chaos to their financial market after a sharp jump in the household debts in the later 1980s was followed by a plunge in real estate prices in the early 90s. The bank warned that Korea would have to carefully supervise its household debts in order to avoid a similar situation. According to the BOK, Sweden, Norway and Finland had pressed ahead with policies to liberalize the money market, including free money rates and deregulation of financial organizations' borrowing from overseas in 1980s. As the results of the deregulation, the price of real estate soared, as investors borrowed heavily from banks and put the funds into real estate. Around 1990, the economy in the region sagged and the bubbles in the real estate market burst, leaving household borrowers insolvent. english.chosun.com