Housing Bubble 2.0
The housing market in the UK and US have been described as 'frothy' in recent months. The Bank of England has even gone as far as removing its Funding for Lending scheme from households with effect from 2014. The housing market in many economies has been indirectly supported by extensive nursing of banks by taxpayers. In addition, low nominal borrowing rates and near-zero (if not negative) real interest rates have provided the fuel for yet another housing boom and bust. None other than Nouriel Roubini is also concerned about overheating housing markets around the world - click here to read more.