Much of the developed world (especially America and Europe) had a housing bubble.
The Economist asks why America's fell so much faster than the bubbles in Europe:
Perhaps the difference is institutional. American banks had poorer
lending standards and have been quicker to foreclose on properties;
borrowers have been readier to walk away from their homes. In European
countries, owners have been able to sit tight in the hope that prices
will recover. European markets are certainly a lot less liquid. Irish
transaction volumes dropped by 83% from their peak and Spanish ones by
64%, but American deals fell by just 46%. Europe is going in the same
direction as America. It is just getting there more slowly.
