The Spanish Housing Bubble Term Paper

The Spanish Housing Bubble
Looks at the Spanish housing bubble, its causes and effects and how it could have been prevented.
# 147546 | 4,560 words | 12 sources | APA | 2011 | KE
Published on May 12, 2011 in Economics (Macro) , Economics (Micro) , Economics (National)


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Description:

This paper underscores the importance of noting that, in contrast to America, there are many distinctive characteristics of the Spanish real estate bubble. For instance, Spain regulators securitized assets conservatively thus mostly preventing the sub-prime crisis. Next, the author explores the causes of the Spanish housing bubble, for instance a sharp decline in real interest rates, demographic factors and credit expansion. The paper relates that the housing bubble, which supported Spain's economy, eventually burst resulting in a financial crisis. Action recommendations for overcoming this crisis are included.

Table of Contents:
Introduction
Trend in Housing Industry
The Bubble
Causes of the Spanish Housing Bubble
Effects of the Housing Bubble
The Present Situation
Keys to the Future
What Could Have Been Done to Prevent the Housing Bubble?
Conclusion

From the Paper:

"Demographic factors also played a significant role in the housing bubble. The majority of the population was composed of a generation of baby-boomers. With their accumulated savings, these boomers were able to make the most of the ongoing real estate bubble. Furthermore, rapid increase of immigration which took place in the last decade provided an abundance of low-priced, unskilled labor for the construction industry and an increase in demand for housing. By 2005, 7% of Spain's population was foreigners, a percentage which could have reached an estimated 10% as of 2008."

Sample of Sources Used:

  • Asociados, R. d. (2008, June 10). Spanish Real Estate Yearbook 2008. Retrieved May 4, 2010, from www.rracuna.com: https://www.rracuna.com/
  • Ayuso, J., & Blanco, R. (2006). House Prices and Real Interest Rates in Spain. Retrieved May 3, 2010, from www.bde.es: http://www.bde.es/webbde/Secciones/Publicaciones/PublicacionesSeriadas/DocumentosOcasionales/06/Fic/do0608e.pdf
  • Bover, O. (2008). The Dynamics of Household Income and Wealth. Retrieved May 3, 2010, from www.bde.es: http://www.bde.es/informes/be/ocasional/do0810e.pdf
  • eurostat. (2008, August 20). Construction output down by 0.6% in the euro area. Retrieved May 3, 2010, from www.elpais.com: http://www.elpais.com/elpaismedia/ultimahora/media/200808/20/espana/20080820elpepunac_1_Pes_PDF.pdf
  • Girard, M., & Quignon, L. (2006, March). What future for the Spanish housing market? Retrieved May 3, 2010, from economic-research.bnpparibas.com: http://economic-research.bnpparibas.com/applis/www/RechEco.nsf/ConjonctureByDateEN/ACDEBDB7BE42AD85C125713200476351/$File/C0603_A1.pdf?OpenElement

Cite this Term Paper:

APA Format

The Spanish Housing Bubble (2011, May 12) Retrieved April 21, 2024, from https://www.academon.com/term-paper/the-spanish-housing-bubble-147546/

MLA Format

"The Spanish Housing Bubble" 12 May 2011. Web. 21 April. 2024. <https://www.academon.com/term-paper/the-spanish-housing-bubble-147546/>

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