Though the housing bubble has mostly burst, the aftermath is far from concluded -- and the next wave of housing market pain will be global.
In the topics of recent weeks, we have talked about the housing bubble as something that has already burst. This might have encouraged a misconception that needs correcting.
To clarify, the fallout from the housing bubble is not done. There is more pain to come. And that pain will be global.
The U.S. housing market has another major leg down to endure. The fallout could be crushing.
Frighteningly too, there is new evidence that U.S. consumers have hardly begun to deleverage. According to The Wall Street Journal, the majority of U.S. consumer debt reduction thus far has come "the hard way" -- by outright default.
U.S. consumers have NOT wised up and started saving, in other words. Their spending habits have remained largely intact, right up to the point of hitting the wall. The next wave down for the U.S. housing market will be the wall that hits them first.
There is also more pain to come amid the housing burst bubbles of Europe, as we shall explore. And in China, Canada, Hong Kong and Australia, there are still-inflated housing bubbles that have not yet popped. Before all is said and done, these unpopped housing bubbles are virtually certain to bust.
This second wave of housing bubble pain will be deflationary. The crushing grip of debt and evaporated wealth will squeeze the world ever tighter in the coming quarters. Those who deny this are not paying attention.
Let's travel around the world and get a few snapshots of the existing housing market situation.More Here..
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