Luis Amado, the Portuguese Minister for Foreign Affairs has attracted the attention of the international media, when he said that Portugal could be kicked out of the Euro if it doesn't get its economic but into gear.

Amado told reporters that Portugal faces “a scenario of exit from the euro zone” if it fails to tackle its economic challenges.

“There has to be an effort by all political groups, by the institutions, to understand the gravity of the situation we’re facing,” he said.

Although such a scenario could present opportunities to foreign property investors, because of what the likely value of the Escudo versus other currencies would be, experts, analysts and anyone with a modicum of common sense doubts the validity of his fears and statements.

When it comes to foreign exchange rates, the value of currencies are affected by economic news in their countries and competing countries. In this respect, you don't get much of a bigger hit than being kicked out of the euro.

Portugal is in the EU, and its economy is in a bad enough state already, the EU would not seek to damage it further, not least because such a move would pour petrol on the fires of tension that already exist over debt levels, by making it even less likely that Portugal could pay its debts, thereby increasing the fears of investor and its debtors, making raising more finance even harder, and effectively killing the economy.

It is much more likely that his statements were made to increase the urgency to act among Portuguese political parties. But given that the statements will in themselves increase the fears and tension among its debtors and potential investors, enacting the scenario above albeit on a smaller scale, the move has to go down as one of the poorest thought out in history. His advisors must have been drunk.

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Signs of recovery are emerging in the Thai island of Phuket property market after a collapse more severe than most expected. This breeds hope of a similar recovery in Koh Samui and Koh Phangan, other Thai islands with similar markets.

Property prices in Phuket were among the fastest growing in the world during the early-mid noughties as wealthy Asian buyers drove up the price of luxury villas making it one of the world's most expensive places to buy.

Up sprang the island of Koh Samui, receiving the same treatment from developers as Phuket started getting several years earler. Property prices in Phuket and Koh Samui grew at 100% per annum in 2006 and 2007. As Koh Samui also started to get pricey, Koh Phangan was next in line.

When the crisis hit many believed these markets would survive undaunted; because they were fuelled by tourism and buyers from within Asia, which itself was expected to survive the crash. Unfortunately fear became a much bigger problem than the recession, and even the wealthiest started keeping their hands in their pockets until the future became clearer.

Now that the fog is clearing more and more people are putting their heads above the parapet and getting back out there and buying.

Chris Gordon, developer of a new luxury resort village on Phuket has sold all but five of the 44 phase 1 villas at a price of between 20-45 million baht, and such reports have become the norm.

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Well, it seems that the bears were right, and that we are currently heading into the dreaded second dip recession in UK house prices.

Halifax found a 1.8% month on month growth in house prices in October, but that prices were down 1.2% on the more reliable tri-monthly measure.

The Nationwide index, which has been showing falls for longer said that prices fell 0.7% on the month in October, and fell 1.5% over the 3 months ending October.

Falling prices are echoed by the well respected housing intelligence body Hometrack, which said that prices fell 0.9% on the month in October, the 9th straight monthly contraction.

Analysts are unsurprised that prices are falling. The economic outlook is abysmal, we have austerity measures affecting many in the population already, and an ever-present fear over the cut-backs yet to come. This is obviously leading to a wait and see attitude among buyers, very few people will commit to such a major purchase when there is so much uncertainty.

Demand is falling and supply is rising and set to rise faster. Weak supply, which had supported price rises throughout 2009 ended almost as soon as the government abolished HIPS. This meant that sellers no longer had to fork out upwards of £100 quid before they could market their home. Rising supply and falling demand will normally cause prices to fall.

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Spanish banks have began to come forward about the number of toxic real estate assets on their books, and what they are going to do about it, prompting fears that barrels of cheap properties will be flooding the market in the coming months.

Though it has gradually fallen from the limelight, fears over the extent of such assets on bank balance sheets yet to be revealed by banks across Europe has been a fear at the back of many minds over the past 12-18 months. We all knew that they had repossessed far more than they had acknowledged. Now it seems something has triggered the banks in Spain to finally address the issue.

Santander subsidiary Banesto Bank announced that it would be selling 600 properties at 50% below market value. Experts are expecting a similar announcement though probably on a larger scale from the Spanish equivalent of local building societies, so called Cajas banks.

Interest in Spanish property has been increasing constantly for several months, and according to a recent report by Primelocation, searches for Spanish property are now 145% higher than this time last year. This certainly won't be damaged by masses of bargain Spanish properties coming onto the market.

Effects of the foreclosure freeze are beginning to be noticed, especially in the states where foreclosures are running highest.

Auctions on courthouse steps, AKA trustee sales are down 42% in Nevada, California and Arizona according to ForeclosureRadar. Meanwhile the number of foreclosed properties for sale in the Miami-Dade and Broward Districts of Florida has fallen 18% according to Ron Shuffield of Esslinger, Wooten, Maxwell Inc., a realty firm based in Coral Gables, Florida.

The effects of the freeze are difficult to predict, and no official data has been released as yet. There is even widespread debate as to whether it is a good thing or a bad thing.

From a social viewpoint it is a good thing. It means less empty, foreclosed houses in neighbourhoods, and fewer families losing their homes. It is also good for anyone trying to sell a house, because foreclosures pull down values.

On the other hand, we need to clear the decks of foreclosed homes before there can be a real recovery in the US housing market. In that respect it is bad for the market. It will also drop sales -- 31% of all US home sales last month were distressed properties, according to Zillow.com.

"If what's a hiatus turns into a moratorium, that’s quite problematic," Stan Humphries, chief economist for Zillow, a Seattle-based real estate data provider, said in an interview. "It will delay the ultimate bottoming process in the market."

The latest figures from Realty Trac show that a record 102,134 properties were foreclosed last month, before the freeze took hold. There is no official data on how the freeze has affected the market.

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