Don´t want to talk about the economical crisis, this could be very recursive. However, two main mortgage firms in the US were about to crash yesterday and I thought this deserves a comment. I was recently talking to a friend from the US and he mentioned the situation is probably worse than in Spain or Ireland (which suffer from a real-state crash, for that matter).
Currently, people are leaving their houses. Empty buildings. Prices do not recover and the adjustment of interest rates has ended up in a number of bankrupts. Still, the policy in the US and Europe regarding interest rates is completely different. The European Central Bank has increased them in order to take control of the growing inflation. The Fed has decreased them a number of times over the year. For me, that´s like throwing more wood to the fire, but the American economy is the most powerful in the world, it is based on consumism and low interest rates are one way to go.
Since economists are the prophets of the past, in a couple of years, we will read an explanation of this. Let´s see what they say.
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