Sunday, 5 April 2009

Florida property bust threatens condo "death spiral"

While writing a section for a forthcoming book I did a Google search on "Death spiral" (it fits into the theme of the chapter) and came by chance across this alarming article from Reuters

Florida's condominium and homeowners' associations are facing what experts call a trickle-down disaster from the property crisis. Dozens and perhaps hundreds of condo buildings have budget shortfalls as thousands of owners, under water on their mortgages or in foreclosure, stop paying monthly fees.

"I call it a death spiral," Miami Beach city commissioner Jerry Libbin said. "It's a catastrophe in the making."
The situation in Florida was not precisely in accordance with the matter being discussed in my book but is yet another illustration of the evaporation (disappearance) of one of the most enigmatic and non-quantifiable traits of human nature - business confidence.

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