Its amazing how a recession here affects everyone, from Europe to Asia to Latin America. Every single news article I read is about how real estate prices around the world have collapsed, bringing down the rest of the economy with them. Just recently, Dubai was in the news spotlight, and the article was foreboding Dubai's real estate collapse, with numerous buildings including the "worlds largest mall, world's largest hotel" etc having trouble with financing to keep the construction going on. Even in latin america, the news articles are filled with how Brazil, Venezuela and Argentina will brace their economies from the impact of the recession. Whats universal about the article, and this is a good point, is that these economies have learned from their prior mistakes, and have shored up their governments from eventual debt traps.
The real question here is, is this a systemic occurrence where people use high real estate prices in America as a cue for bidding up their own prices. And when capital suddenly dissappears from markets all around the world, I'm talking trillions of dollars in debt lines, whose really cashing out their money?
Does all the capital in the world originate in America, or does American capital dictate how all the capital in the world is to be distributed?
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