Housing Bubble ( Spanish Economy)

 

Housing
 bubble
 
Spanish
 economy
 

 
 
 
 
 
 
  28/05/2012
 


 
 
 


 

Housing
 bubble
 
 
 

spanish
 economy
 

Group
 18
 

INDEX:
 

  1. Introduction
  a. Topic
 and
 objective
 of
 the
 work.
  b. Beginning
 of
 the
 housing
 bubble.
 
  2.Body
  a. Causes
 of
 the
 housing
 bubble.
  b. Consequences
 of
 the
 housing
 bubble
 and
 actual
 situation.
  c. Comparation
 with
 the
 states.
 
  3. Conclunding
 remarks.
  a. Forecast.
  b. Personal
 opinion.
 
  4. Graphics.
 
  5. Bibliography.
 
 


 

 
 
 
  2
 


 Housing
 bubble
 
 
 

spanish
 economy
 

Group
 18
 

1. INTRODUCTION:
 

  a. Topic
 and
 objective
 of
 the
 work.
  Our
 work
  is
  about
  the
 housing
  bubble.
 We
  decided
  to
  study
  this
  subject
 because
  it
  is
 one
  of
  the
  main
 causes
  of
 the  current
  crisis.
 In
 addition
  it
  is
  an
  interesting
  that
  we
  were
  not
 informed.
 This
 work
  helps
  us
  to
 understand
  the
  current
 situation
 of
 Spain
 and
 the
 importance
 of
 the
 construction
 in
 our
 country.
 
  The
  aim
  of
  this
 paper
 is
  to
  analyze
 the
  housing
  bubble
  and
 try
  to
  express
 the
 most
  relevant
  information
 clearly
  and
 concisely
  in
 the
  document.
  We
 
  will
  also
 explain
  what
  is
 
 the
  housing
  bubble,
 in
  what
  context
 was
  given,
 housing
  bubble
 causes,  consequences
 after
  the
  boom,
  what
  is
  the
 current
  situation
 and
  make
 a
  comparison
 with
  what
  happened
  in
 United
  States.
 Finally,
  we
  will
  make
 a
  forecast
  of
 the
  evolution
  of
  the
 sector
  over
  the
  next
  years
  as
  well
  as
 a
 personal
  opinion
 about
 everything
 that
 was
 happened.
 
  b. Beginning
 of
 the
 housing
 bubble.
 
  The
  economic
  crisis
  is
  a
  big
  issue
  in
  the
  world.
  It
 was
 started
 in
 1979
 when
  the
 tax
 credit
 for
 home
 purchase.
 The
 social
 Francisco Fernandez
 Ordonez
 made
 a
  tax
  reform
  that
  marked
  the
  birth
  of
  the
  personal
  income
  tax
  and
  established
  the
  15%
 deduction
 for
 the
 acquisition
 of
 successive
 homes.
  But
  not
  only
  stimulated
  the
  tax
  benefit
  on
  housing
  investment
  decisions.  Also
  the
  cycle
  of
  economic
  expansion
  and
  cutting
  interest
  rates
  by
  the
  Bank
  of
  Spain
  with
  the
  integration
  in
  the
  euro,
  11%
  in
  1995
  to
  3.5%
  between
  2003
  and
  2005,
  which
  lowered
  mortgage
  interest
  and
  encouraged
 indebtedness
  to
  homeownership.
  The
  liberalization
  of
  ground
  in
  98
  overvaluation
  prompted
  the
  development
 gained
 ground.
 in
 2002
 the
 Bank
 of
 Spain
 warned
 about
 it.
  The
  economic
  began
  to
  getting
  worse
  from
  the
  expansion
  of
  the
  international...