How contagious is the US housing problem?

Question

How did America's subprime crisis reduce the willingness of healthy foreign banks to lend money for property developments in Asia? I think this happened before commodities for construction rose very high to pose a serious cost problem to the developer this year.

Answer 1

in the uk house prices rose so fast  same across the  usa its was bound to happen  people borrowed so much money and then  oil prices went up so lots of people just went bust ... lots of jobs gone .. bank wat money back  but none coming . far to many rogue traders playing with r money  and every things just priced its self out of  nominal range in london a poxy 2 bed flat is over half a million  ...  y on earth  did you think it was not going to happen ?

Answer 2

A lot of non US bank  bought securities based on mortgages so they lost  money also,so they have less money to lend. Even the ones that did not have become more cautious, especially on real estate loans.