The most affected nations were those that hold close investment and trade ties with the United States, as was the case of Mexico. The widespread negative impact of the meltdown has justifiably called the attention of policy makers to finding ways to pursue financial stability and avoiding future collapses. To be realistic, the scope of such an objective should be properly bounded.
Financial bubbles, characterized by substantial rises in asset prices departing from previous trends that are suddenly interrupted by a sharp fall, have been common in economic history. While volatility in stock, currency and commodities prices are the norm, occasionally bubbles emerge in many assets, including housing.