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Falling House Prices

Falling House Prices

www.economist.com

Soaring house proces have given a huge boost to the world economy. What happens when they drop? Anecdotally, things are beginning to slow down in Kilkenny, Ireland. Whether that means a day of reckoning for the building industry in Ireland is another matter. However, if the current housing booms screeches to a halt in Ireland, citizens will be glad to avail of the SSIA windfall that the government has subsidised during the past four years.

The global housing bubble is unprecedented. Measured by the increase in asset values over the past five years, the global housing boom is the biggest financial buble in history. The bigger the boom, the bigger the eventual bust.