Too many people now have too much to lose if the bubble deflates, and too many people will be permanently in debt or outside the housing market if it doesn't. And it's a global problem at this point.
The reason the article is focused on the US is that the numbers today were from the US; and the centrality of the US monetary policy in keeping the bubble going and the sheer weight of the US economy, means that it is the bellwether for what is to come other places. No US bashing intended. It's just the old truism that is Wall Street has a sniffle, the rest of the world catches pneumonia transcribed to real estate. Bitsofnews.com Giving you the latest bits.
That being said, there have been housing booms and busts before but unless you live in hot spots like San Francisco and that area, a housing bust rarely yields appreciable deflation. What we call a bust in the US is really a long period of stagflation.
Even in densely populated and prosperous Connecticut, you can still buy a decent sized home for $270,000. Which sure beats buying a home in Italy and Greece.
