Wait for it

A year ago, the UK probably looked more vulnerable than the US to problems in the housing economy. It has worked the opposite way. Confidence, the expectation that prices will only go up from here, was equally extravagant in both the US and UK. The economic news was also been equally supportive - solid growth and low unemployment. But house prices looked more bubbly in the UK. In the decade up to 2006, the excess price increase - the gap between house prices and nominal GDP per person - was 69%...