Report Sees U.S., U.K. Credit Bubble

An unsustainable "credit bubble" has developed in the United States and the United Kingdom in recent years that has left the housing markets in both nations vulnerable, according to new research from Research and Markets, Dublin, Ireland.The report contends that a "massive" build-up of debt in the United States and the United Kingdom has "badly corrupted" the economies of both countries and could have seriously destabilizing results. Among the findings of the report are that the Federal Reserve's "easy money" response to the technology bubble in 2000 has created a "global housing bubble" that has pushed mortgage debt to "dangerously high" levels. "Homeowners, consumers, and financial markets will all feel the consequences of the bubble bursting, though whether the outcome is renewed inflation or deflation cannot yet be foretold," Research and Markets said. Edward Chancellor is the author of the report, titled "Crunch Timer for Credit? An Inquiry into the State of the Credit System in the United States and Great Britain." The company can be found online at http://www.researchandmarkets.com.