Criterion Global: International Media Buying Blog

Japanese model home touts eco-gadgets for G-8 Summit; Air-washing lanudry, etc. Using technological manufacturing prowess, Japan stays at the state-of-the-art for cool eco-friendly finishes.

Lastly, the WSJ gave a concise account of Spain’s housing crisis, which now threatens the Euro. Sound familiar?

[1] In 2006, Spain built more than 700,000 houses — more than France, Germany and the U.K. combined – and investment in housing accounted for nearly 10% of gross domestic product, more than twice the euro-zone average.(…)

[2] Preparing for EU membership in 1999, Spain deregulated its labor market and cut government spending. A spike in immigration gave Spain cheap labor, and a need for housing – this potent mix was coupled with low interest rates, all of which contributed to the building boom.

[3] The boom peaked last year when prices tripled their 1997 levels and a series of interest-rate increases made financing more expensive. The outbreak of the U.S.subprime-mortgage crisis last summer precipitated a correction by making financing even more expensive for Spanish home builders.

[4 - Now] …Spanish home-sales transactions fell by 32% in the first quarter from a year earlier, new housing permits dropped 41% in April and nearly 100,000 construction jobs were lost in the first half.