
Banks around the globe face the same perils as those in the United States. Housing bubbles inflated in many countries during the 00s, and the banks that provided the cheap debt find themselves dangerously exposed to losses. The only way lenders can save themselves is to reflate the housing bubbles so they can liquidate their bad loans and recover their capital. The same dynamic that prompted US officials to coordinate with lenders to reflate a housing bubble is at work overseas. What can California can learn from Britain’s housing bubbles? I've been reporting over the last few months that house prices in Coastal California have reflated back to historic levels of affordability. We aren't in a bubble yet, but if…[READ MORE]