It was the twenty first century’s equivalent of the south sea bubble, easy money schemes built on a very slender foundation. When the bubble burst it undermined completely the banking and financial system, which in turn affected the real economy.
Worryingly, the construction industry grew by 8.2% and 3.2% in Q2 and Q3 of Summer 2010 but by 1.1% and -0.6% in Summer 2011. The state of the construction industry is a good barometer to the health of the economy. This fall doesn’t bode well for the future.