Rather than being one homogenous market, residential real estate in Europe is fragmented, comprising a host of local markets with complex and varied drivers. Government planning regimes, legal frameworks and local customs are among the factors that differ significantly across locations. The disparity extends to the investment side, as markets are usually dominated by small local players.

“MF Global just filed for bankruptcy,” were the first words my friend said to me on the phone. Before I could respond, he added, “Don’t worry about me; I moved most of my account away from them a few days ago. What I’m calling about now is this: How concerned should I be about the U.S. bank lenders to MF Global, especially the lead banks that syndicated the loans? Do you think they have enough exposure to bring them down as well?”

Another year has gone by, with only marginal improvement in the overall domestic economy. Markets continue to demonstrate wide mood swings, holding on to every glimmer of hope, only to come smashing down as soon as the next dark cloud appears on the horizon.

We saw the emergence of the sovereign debt crisis in Europe coupled with the issuance of new regulations such as Basel III, Solvency II and Dodd-Frank; the battle over the raising of the U.S. debt ceiling followed by the temporary reprieve granted by Congress; the Arab Spring and the fall of Gaddafi in Libya; flooding in various regions around the world; continuing tensions between North and South Korea, and between China and several of its neighbors; the end of Osama bin Laden; rioting in London, the suburbs of Paris and downtown Oakland; escalating energy and food prices; rising then falling commodity prices; the threat and then the aversion of hyperinflation in China — so much turmoil, so much turbulence.