Bloomberg, 10-13-05, Housing Bubble Threatens Global Economic Growth, Bootle Says
For an international perspective:
Famed British Economist, Roger Bootle echoes our views on the bursting of the housing bubble creating a massive economic slowdown and recession. In fact, Bootle’s remarks describe not just a domestic slowdown, but one that will span the globe. And he goes on to say that when the bubble bursts, “the world will tremble.”
More evidence against the pseudo-experts who continue to challenge our theory of a national slowdown that will result in a recession. This article parallels our premise as it lays out Bootle’s argument for global economic recession declaring that as the housing boom comes to an end, people will pare spending and layoffs will ensue.
Bootle describes the economic condition transpiring now in Great Britain, whose housing market is preceding the decline in the U.S.. There, an economic slowdown has ensued and the national bank is expected to begin cutting interest rates to stimulate spending—an effort to ward off economic recession ala Germany and Japan. Japan has seen 4 economic recessions since 1991. Europe’s economy grew at a paltry .3% as Germany, that union’s largest economy stagnated last year when housing values declined.
Bootle goes on to say that the US real estate is following closely the market in Great Britain which saw a 15% increase in real estate values last year followed by a 2% decline year to date.
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