The U.S. mortgage crisis is still sending shockwaves through the world economy.

According to the Federal Reserve, some one and a half million foreclosures were initiated in 2007 – a 50 percent spike from the previous year.

The World Bank predicts that the ensuing financial turmoil could cost the world a full percentage point in economic growth in 2008.

The impact is being felt even in politics, as Jim Johnson, the man running Barack Obama’s vice presidential search team, stepped down after accusations that he received mortgages on favourable terms from Countrywide Financial, a central player in the sub-prime lending crisis.

Some firms have managed to get their way through the real estate downturn so far.

Starwood Capital is one of them. Founded in 1991, the real estate investment firm has interests in a wide range of property sectors, from senior housing to golf courses.

Managing director Russell Sternlicht shares his views with FRANCE 24 on the U.S. housing turmoil, the credit crisis, the impact on the European real estate market and his firm’s business prospects.

Brigitte Taittinger, CEO of Annick Goutal perfumes, a company owned by Starwood Capital, talks more specifically about the relations with an investment fund as main shareholder.

To watch the interviews, click “Play Video” above.