User:Nick Gardner /Sandbox: Difference between revisions
imported>Nick Gardner No edit summary |
imported>Nick Gardner No edit summary |
||
| Line 1: | Line 1: | ||
In response to the increase in demand there were almost unprecedented increases in house prices in several countries. In the United States real (inflation-corrected) prices rose by nearly 85 percent between 1997 and 2006<ref>[http://jec.senate.gov/archive/Documents/Reports/10.25.07OctoberSubprimeReport.pdf ''The Subprime Lending Crisis'', US Senate Joint Economic Committee, October 2007]</ref>, in the United Kingdom there was an (uncorrected) rise of 180 per cent <ref>[http://news.bbc.co.uk/1/hi/business/6090972.stm BBC news 2006 Friday, 27 October 2006]]</ref>, in Spain they nearly trebled<ref>[http://www.spainrei.com/MiV-Spain-Property-Prices-95-07-yearly.htm ''Spain Property Prices 1995 - 2007'', Ministerio de Vivienda, 2008]</ref>, and in Ireland they more than quadrupled <ref>[http://www.imf.org/external/pubs/ft/wp/2010/wp1057.pdf Daniel Kanda: ''Asset Booms and Structural Fiscal Positions: The Case of Ireland'', International Monetary Fund, March 2010]</ref>. | |||
<ref>[http://jec.senate.gov/archive/Documents/Reports/10.25.07OctoberSubprimeReport.pdf ''The Subprime Lending Crisis'', US Senate Joint Economic Committee, October 2007]</ref> | |||
BBC news 2006 Friday, 27 October 2006 | |||
Many economists argue that house prices have risen too far too fast in many markets, forming a bubble that could rapidly collapse and trigger an economic downturn, as overinflated stock prices did at the turn of the century | Many economists argue that house prices have risen too far too fast in many markets, forming a bubble that could rapidly collapse and trigger an economic downturn, as overinflated stock prices did at the turn of the century | ||
currently chairman of the president's Council of Economic Advisers, in testimony to Congress's Joint Economic Committee. But these increases, he said, "largely reflect strong economic fundamentals," such as strong growth in jobs, incomes and the number of new households. <ref>[http://www.washingtonpost.com/wp-dyn/content/article/2005/10/26/AR2005102602255.html Nell Henderson: ''Bernanke: There's No Housing Bubble to Go Bust'', Washington Post, October 27, 2005 ]</ref> | currently chairman of the president's Council of Economic Advisers, in testimony to Congress's Joint Economic Committee. But these increases, he said, "largely reflect strong economic fundamentals," such as strong growth in jobs, incomes and the number of new households. <ref>[http://www.washingtonpost.com/wp-dyn/content/article/2005/10/26/AR2005102602255.html Nell Henderson: ''Bernanke: There's No Housing Bubble to Go Bust'', Washington Post, October 27, 2005 ]</ref> | ||
| Line 32: | Line 21: | ||
<ref>[http://www1.worldbank.org/finance/html/database_sfd.html ''Bank Crises Database'' World Bank 2003]</ref> | <ref>[http://www1.worldbank.org/finance/html/database_sfd.html ''Bank Crises Database'' World Bank 2003]</ref> | ||
<references/> | <references/> | ||
Revision as of 06:11, 17 March 2010
In response to the increase in demand there were almost unprecedented increases in house prices in several countries. In the United States real (inflation-corrected) prices rose by nearly 85 percent between 1997 and 2006[1], in the United Kingdom there was an (uncorrected) rise of 180 per cent [2], in Spain they nearly trebled[3], and in Ireland they more than quadrupled [4].
Many economists argue that house prices have risen too far too fast in many markets, forming a bubble that could rapidly collapse and trigger an economic downturn, as overinflated stock prices did at the turn of the century
currently chairman of the president's Council of Economic Advisers, in testimony to Congress's Joint Economic Committee. But these increases, he said, "largely reflect strong economic fundamentals," such as strong growth in jobs, incomes and the number of new households. [5]
House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals, including robust growth in jobs and incomes, low mortgage rates, steady rates of household formation, and factors that limit the expansion of housing supply in some areas. House prices are unlikely to continue rising at current rates. However, as reflected in many private-sector forecasts such as the Blue Chip forecast mentioned earlier, a moderate cooling in the housing market, should one occur, would not be inconsistent with the economy continuing to grow at or near its potential next year.
- ↑ The Subprime Lending Crisis, US Senate Joint Economic Committee, October 2007
- ↑ BBC news 2006 Friday, 27 October 2006]
- ↑ Spain Property Prices 1995 - 2007, Ministerio de Vivienda, 2008
- ↑ Daniel Kanda: Asset Booms and Structural Fiscal Positions: The Case of Ireland, International Monetary Fund, March 2010
- ↑ Nell Henderson: Bernanke: There's No Housing Bubble to Go Bust, Washington Post, October 27, 2005
- ↑ [www.house.gov/jec/hearings/testimony/109/10-20-05bernanke.pdf Ben Bernanke: The Economic Outlook, Testimony to the Joibt Economic Committee October 20 2005]
- ↑ Robert J. Shiller: Historic Turning Points in Real Estate, Cowles Foundation Discussion Paper No. 1610, NPR news, June 2007
- ↑ Bank Crises Database World Bank 2003