There seems to be a lot of chatter about how interest rates are global in their reach, and how other economies will follow the US in a slow down, but I wonder what impact local housing crises will have on a global downturn. I don’t believe the US is unique in having a subprime market. I believe UK lenders have been equal in their willingness to lend well beyond what people can afford, and that the biggest problems are likely to be in Spain. Many countries don’t have access to national data, so these things can creep up on you and go pop before anyone sees them coming. Perhaps when other economies are hurting more, the pressure may be on a strengthening dollar. Mind you a decoupling from the dollar could also happen.
