A Foreclosure Story
Foreclosure and other housing sub-markets that are closer to average European countries are in Arizona highly speculative, where the state had to intervene and ban the sale of newly built houses in less than a year and increase taxation for those whose purchase allowed owners to occupy them.
In extreme cases like the current foreclosure crisis, analysis must start from the economic fundamentals that underlie them. Each American sub-market is different, it has another socio-economic composition, and each will look different in 2-3 years.
Furthermore, according to a study, sales of properties with problems, of foreclosures, are increasing globally. It has increased substantially over the past year, at international level, and their number will boost in 2010, the largest increases in purchases of such properties being recorded in South Africa, USA, New Zealand, Malaysia and Hungary, according to a survey by a royal institute of a British association of chartered surveyors.
According to the study, quoted by international media, over 75% of the 27 countries included in the survey registered in 2009, in the second quarter an increase in sales of foreclosed properties, compared to the first quarter.
Decreasing rents and increasing bankruptcies, will likely increase the number of foreclosed properties on the market in the coming period, according to senior economists.
In addition, the market has seen an increase in interest in foreclosed properties. Among markets that are attractive for such investment funds are Italy and United Kingdom. Germany, U.S., Hungary, Romania, Spain, and Ireland come from behind. One of the most obvious reasons of the current interest is undoubtedly the level of price decline in some of these markets.
Now back to foreclosure crisis in the USA, a story of the crisis can be written on how Arabs and Russians were fooled from the financial point of view. Record profits announced by the in 2009, from foreclosure crisis ($ 52 billion, compared to 47% in 2008) have grown even more speculation that the crisis has been artificially generated to trap oil and gas tycoons in Asia and the former Soviet Union. It is a speculation, a story that could be written as made up story or reality.
The USA was happy to welcome foreign investors. Everyone wanted to invest in it but Washington politicians were not easily persuaded. Years passed, one after another, and the USA already gave signs of slowing down. Economic growth stagnated, consumption was over-tired, and exports were not as competitive as before.
Faced with this situation, the USA government realized that they really had to do something, especially since, meanwhile, Arabs, Russians, Chinese had begun to open eyes, to see other countries with potential, other emerging countries. In addition, as their wealth grew as in fairy tales, on the background of demand for oil and gas at global level, Americans were forced, basically, to make a decision. Said and done.
They invited the Arabs, the Russians, and the Chinese in their country to see their wonders. This is the beginning of a huge mistake, which analyzed more deeply leads to the foreclosure crisis.
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