The recession that engulfed the world economy in 2008 has taken the economic analysts by surprise. Questions have been raised about the effectiveness of economics as a predictive science. The recession was not the outcome of a business cycle fluctuation that macroeconomic theory has explained and solved in the past. It occurred entirely from a situation of market failure in the financial segment. It was the property bubble that inflated to such an extent that the whole world was affected when the bubble burst out in 2008. In this paper we are going to describe how this property bubble ...
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