At the end of the day, this is not just about sub-prime loans. Many people with good credits have been dabbling in the property markets for investment. When their property prices fall to values less than what they owe, they also walk out and force foreclosure. Then there are people who have bought expensive houses to keep up with the joneses. When the economy slows down, you will hear some howling from these quarters as well. The mess is far from over. At the same time, if you think Indian economy and real estate will escape this slowdown, then you are just dreaming. When western companies downsize, offshore offices get hit as well. Whether there will be a bloodbath or not in India, will depend on how many excesses have occurred. But, surely it will not be painless.
