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

To: Think4Yourself who wrote (168729)	12/3/2008 3:48:46 PM
From: butschi2	Respond to of 306849

Their banks may have been even more brain dead than ours, lending vast sums to developing countries who are not in a position to pay it back. Spain and UK will perhaps collapse especially UK has a huge GDP compared to smaller countries in eastern Europe and therefore it may be to big to save for the EU and UK is very dependend on banking (London) and had a huge housing bubble coupled with huge personal debt. The sterling may get crushed. Ugly. Although vulnerable is Spain with a huge building sector and a housing bubble imploding and jobless rate already exploding upwards very fast to 12% now. Italy and Greece have huge debts and have already been in a bad shape before the credit problems and credit spreads on government debt increased fast the last weeks. Greece is not too big to save but is depended on toursim and shipping and should therefore be hard hit by the downturn. German and Austrian banks have huge bets in east europe and Spanish banks in Southamerica. Bubble countries in eastern Europe as Hungary and baltic staates got money or are in the need of money, but luckily they are small countries from a GDP perspective. Austria may get in deep trouble because of huge lending compared to GDP 80%+ from their banks to eastern Europe. That was what crushed Island. Germany is especially vulnerable because of auto makers and exports in decline. There is no way to hide for countries connected in the global world through their exports or imports. - Dubai running out of money. - China decelerating fast and furious - Japan already in recession - Korea in disarray - Thailand on the brink