Roubini: It is widely agreed that a series of collapsing housing-market bubbles triggered the global financial crisis of 2008-2009. While the United States is the best-known case, a combination of lax regulation and supervision of banks and low policy interest rates fueled similar bubbles in the UK, Spain, Ireland, Iceland, and Dubai. Now, five years later, signs of frothiness, if not outright bubbles, are reappearing in Switzerland, Sweden, Norway, Finland, France, Germany, Canada, Australia, New Zealand, and, back for an encore, the UK (well, London). In emerging markets, bubbles are appearing in Hong Kong, Singapore, China, and Israel, and in major urban centers in Turkey, India, Indonesia, and Brazil. What we are witnessing in many countries looks like a slow-motion replay of the last housing-market train wreck. And, like last time, the bigger the bubbles become, the nastier the collision with reality will be. Read more at (VIEW LINK)
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