This is definitely not a positive phase for the brick.
First of all in Italy there is a strong fear that the land registry reform will turn into a real sting on the IMU, but on the international front there is a strong fear of a devastating real estate crack like that of 2008.
Let’s see what’s going on. The government had ensured that the land registry reform it wouldn’t be blood and tears for property owners but instead it probably will.
Real estate crack and IMU sting
In fact it is the European Union to ask for a large increase in the IMU to finance the tax wedge cut.
So given that to finance the cut of the tax wedge, a lot of money will be needed and will have to come from the increase in the IMU it is clear that the land registry reform will be catastrophic for property owners. But more and more analysts fear that a real estate crash like the devastating one of 2008 could loom on the horizon. In fact in 2008 there was a real estate crash that triggered an unprecedented devastation on the stock exchanges and the American and world banking system. Let’s see why this crack on the real estate front is feared. As we know, inflation is really very high.
There can be a collapse like in 2008
Indeed central banks around the world they have flooded the economy with money to bring interest rates down to zero. This operation was done during the covid pandemic to revive the economy. The problem is that this operation however also laid the foundation for high inflation that we are currently experiencing. Central banks are now forced to raise rates in order to stem this strong inflation. But turning up the keys means to concretely risk jamming the rich mortgage market in the United States.
US mortgages jam
The mortgage market in the United States is worth a lot and already today that the Federal Reserve has only started its march towards a rate hike, it is showing significant signs of suffering. So many believe that the necessary rate hike on the part of the banks can lead to a real crack in the world of American mortgages. And the effect could be systemic. So the Federal Reserve is at one very serious doubt. It must stem inflation, but it must also avoid the housing collapse and the recession that rising rates can cause.
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