Cracks appear in Europe

With a strong euro, a steadily recovering economy, and no looming threat from inflation, you might t...

With a strong euro, a steadily recovering economy, and no looming threat from inflation, you might think that Europe's property market was largely immune from the decline in US home values. Think again. Cracks are starting to appear in the real-estate markets of Ireland, Spain and France - the three euro-area countries where property prices have soared in recent years. The housing markets in these countries may be on the verge of a sustained period of stagnation - and maybe even a full-blown collapse. Why? House prices surged because interest rates were set too low for those nations for s...