The French housing market transaction volume declined by 25% last year, according to Century21. The fall in the French housing market is just beginning. And given the macro problems in France and the previous run up in house prices, the housing sector will take on increasing importance in France as a credit decelerator as France struggles with the sovereign debt crisis.
The underlying issue in France as everywhere in the euro zone is that France, having given up its currency sovereignty to join the euro zone, must decrease spending or increase tax receipts to cover deficits or it must turn to the bond markets to cover those deficits. There's no printing press in France now. That makes the country beholden to the bond market like any other ordinary private sector currency user with a negat...
As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.
Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.