The Yankee bubble bursts, but only drips on Poland

Managing real estate investments is becoming more expensive as the credit for both construction and home and commercial property purchases starts to dry up. Bankers are staying calm, claiming that the more restrictive loans policy is the effect of rising interest rates and not a spill-over of the US crisis. Really?  In 2001 the US economy suffered a crisis caused by an excessive valuation of the new technologies market – the dot.com crash. After this, Americans began investing in something more tangible – real estate. A powerful factor adding to this was the Fed’s reduction of interest from 6.5 pct in 2001 to 1 pct in 2005. The demand for mortgages rocketed, which led to banks relaxing the conditions for granting loans. The proportion of so-called risky credits surged. In the peak year of 2005, some experts wryly remarked that the main requirement for a bank loan was if the customer’s pulse was detected. The situation has deteriorated today to one in which an i