This is an alarming issue there in China. real estate bubble actually occurs periodically in local or global real estate markets. It is characterized by rapid increases in valuations of real property such as housing until they reach unsustainable levels relative to incomes and other economic elements, followed by a reduction in price levels. For sure, it might also affect other elements with occurrence in this matter.
Danger of second slump looks remote. The markets have stabilized at the bottom levels and what we could see are marginal swings. We should not get carried away by the swings which will be of short durations.
What a great collection of articles and background information about the subprime crisis. It is amazing what happened in such a short period of time. It is also astonishing that investment banking is already somehow booming again. There has hardly anything been done on the regulatory level. The next asset crisis will come for sure.
The prime property market in London is a market segment per se. Even though the rest of the market has not recovered yet, the price appreciation of prime property does not necessarily have to lead to a new bubble. Prime property is scarce and it can be an attractive investment in the longer term.