Bubbles, bubbles everywhere, even in India's housing mkt, says Roubini

Economist andNYU Stern Business School Professor Nouriel Roubini has sounded a major warning against housing bubbles globally and this time he has not spared India.

The 2007-08 global financial crisis was triggered by the collapse of housing bubble in the US. And now five years later, ina Project Syndicate column, Roubinihas identified at least 17 housing bubbles that are developing across the globe.

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Roubini writes that frothiness, if not outright bubbles, are reappearing in housing markets in Switzerland, Sweden, Norway, Finland, France, Germany, Canada, Australia, New Zealand, and, back for an encore, the UK (well, London). In emerging markets, bubbles are appearing in Hong Kong, Singapore, China, and Israel, and in major urban centers in Turkey, India, Indonesia, and Brazil.

“In China and India, savings are going into home purchases, because financial repression leaves households with few other assets that provide a good hedge against inflation. Rapid urbanization in many emerging markets has also driven up home prices, as demand outstrips supply,” he writes. ( Read the full blog here).

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