If predictions of a correction in the US housing market are right, the global economy is in for a very bumpy ride
David Rosenberg, the chief economist for North America at Merrill Lynch in New York, is "convinced that the housing market is ripe for a price correction". If he is right, 30 years of history suggests any collapse would imperil the outlook for global economic growth. Thomas Helbling, deputy chief of the world economic studies division at the International Monetary Fund, tracked the housing market histories of 14 industrialised nations for the period from 1970 to 2002, finding 75 home-price cycles. Bull markets typically lasted a bit less than three years, with prices climbing by a cumulat...
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