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Mr Joshi sees the answer to this divergence in terms of supply. Between 2002 and 2006 American builders constructed 12m new homes while only 7m new households were formed. American homeowners are also much more likely to walk away from their debts because many mortgages are “non-recourse”, meaning that lenders cannot come after borrowers' other assets. As a result, repossessions are much higher in America than in Britain: Capital Economics says that some 5m foreclosed homes will come onto the market over the next two years.