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2006 Real Estate Bubble 1 |
RISMEDIA, April 6, 2006—Two-thirds of lenders nationwide believe a real estate bubble currently exists in the United States - and half of them believe it has already begun to burst or will burst in the next six months, according to the results of this quarter's Phoenix Management "Lending Climate in America"
When asked to select from a list of six issues that had the most potential to hurt the U.S. economy, 38 percent of lenders named the federal budget deficit. That was followed by the war in Iraq (18 percent), the trade deficit (14 percent), the sluggish job market (12 percent), low household savings rate (9 percent) and the real estate bubble (9 percent).
Lenders also reported lukewarm growth plans by customers. Twenty-two percent said their customers planned to make new capital investments. Sixteen percent, each, said their customers planned to: enter new markets, introduce new products or services; raise additional capital; or make an acquisition. |
