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October 27, 2016 | Merkel to Regulate Real Estate Loans

Martin Armstrong

Martin Arthur Armstrong is the former chairman of Princeton Economics International Ltd. He is best known for his economic predictions based on the Economic Confidence Model, which he developed.

Merkel-Forcing Refugees

Merkel wants to regulate real estate loans in Germany. The Federal Government is planning to implement extensive regulations on real estate loans. Among other things, debtors will be required under certain circumstances to repay their loans within a given period. The Federal Government said on Monday that the draft law should be followed by recommendations from the German Committee on Financial Stability.

While there is no real estate bubble right now, it appears they are concerned about further capital inflows, perhaps caused by the failed euro. The new hurdles to be imposed for new loans may have the negative impact of making sales of property in Germany far more difficult as a whole. Such schemes have tended to have a negative impact upon price.

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October 27th, 2016

Posted In: Armstrong Economics

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