The US and UK housing markets - the two great bubbles of our time - are in a race to the bottom. Which country will produce the biggest decline in house prices.
The US got off to a quick start. Their crash began in the summer of 2006. According to the Case-Shiller composite 20 index, prices have fallen about 22 percent. An impressive start, which will be followed up by further dramatic declines in the years to come.
The UK, on the other hand, managed to keep their bubble going until October 2007. However, the credit crunch sprang up, and despite the best efforts of Brown, Darling and King, the bubble was over. Prices are down 16 percent from their peak.
So, who is going to win the title of the greatest housing bubble in history. My money is on the UK. Our bubble was bigger, longer and nastier than anything produced by our American cousins. This is one race we are going to win.