CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Watch: Capital.com debate - Could a housing market crunch crash the global economy?

By Capital.com Video

14:00, 18 October 2022

Housing crash debate
Inflation and rising interest rates are exerting strains on borrowers: how will this play out in the global housing market? Richard Wolff and David Woo discuss - Photo: Shutterstock

House prices, inflated by unprecedented demand during the pandemic, are at record highs in many regions of the world, but cracks are beginning to appear. Rising inflation and interest rates are putting strain on borrowers across the US, UK and Europe, while deserted developments in China are bringing property companies such as Evergrande (3333) close to bankruptcy.

A crash in the US housing market during 2007 sowed the seeds for the 2008 financial crisis, and experts are warning it could happen again. In this debate, Capital.com’s market strategist Daniela Hathorn speaks to Richard Wolff, professor of economics at the University of Massachusetts Amherst and David Woo, a former IMF economist and Wall St strategist at Bank of America and Barclays. Is a housing crash inevitable, and what would be the impact on the global economy?

 

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 610,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading