Jan 11, 2006

Double Bubble Trouble

Swedish bourse and capital markets move in near tandem with their U.S. counterparts. Everyone's talking about the housing market on both sides of the bucket these days and about when the next major correction will swoop down and feast on the home equity positions of the eaters.

A couple of Macro-dudes outta HSBC just published a study entitled Interest Sting.

They claim that near half of the U.S. housing market is in the Bubble Zone and that this zone's overvaluation is in the range of 50 % of U.S. GNP - or 6000 Billion USD if you like your bubbles expressed in such a manner.

That would roughly correlate in size to the value of the U.K., German, and French economies together. Hubba Bubba!

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