Yes, this bubble, the biggest in recorded human history, was worldwide.
And now the great housing meltdown shall be as well.
Enjoy the Economist classic - In Come the Waves. Now THAT was some good reporting.
The worldwide rise in house prices is the biggest bubble in history. Prepare for the economic pain when it pops
Never before have real house prices risen so fast, for so long, in so many countries. Property markets have been frothing from America, Britain and Australia to France, Spain and China. Rising property prices helped to prop up the world economy after the stockmarket bubble burst in 2000. What if the housing boom now turns to bust?
According to estimates by The Economist, the total value of residential property in developed economies rose by more than $30 trillion over the past five years, to over $70 trillion, an increase equivalent to 100% of those countries' combined GDPs. Not only does this dwarf any previous house-price boom, it is larger than the global stockmarket bubble in the late 1990s (an increase over five years of 80% of GDP) or America's stockmarket bubble in the late 1920s (55% of GDP). In other words, it looks like the biggest bubble in history
November 29, 2006
Posted by blogger at 11/29/2006