We are quickly moving towards a capitulation point for the Euro area, especially in light of Berlusconi's victory, which raises non-trivial questions regarding the future viability of the Euro experiment.
And lending standards are presaging the coming difficulty.
Meanwhile, banks are clamping down on buyers amid fears that the credit crunch is spreading to Europe. For example, Banco Halifax, the Spanish division of Britain’s biggest lender, has increased the minimum deposit required from 30% to 40%, adding about £16,000 to the typical euro mortgage of €200,000. It has also cut the maximum it will lend to borrowers from €2.5m to €1m.