The European system is heading for a mad crash landing with most of the economies expected to report a negative GDP growth in the fourth quarter of 2008. The housing prices in UK has been falling for the last year or so, and the latest monthly data continues to show a decline in the housing prices.

This is really bad news for the entire economy because further investment into the main housing sector will be postponed by prospective investors because they will continue to fear further decline. The economic downturn also is likely to become sharper in the first half of 2009 because there will be more foreclosures due to falling prices.