US Recession: Drop in Housing Market
US Recession: Drop in Housing Market
"The U.S. economy will tip into a mild recession in 2008 as the result of mutually reinforcing cycles in the housing and financial markets," the IMF said. Rising house prices drive consumption, as homeowners borrow against their houses' value or just spend more, content in the knowledge that their net worth is growing. Transactions are arguably even more important, as they produce work for lawyers, builders, bankers and a host of other people. A long and deep slide in house prices will undoubtedly drive defaults higher, as buyers with negative equity in their houses decide to transfer their pain to banks. - James Saft Reuters: Herald Tribune
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07/31/2008 squidb8
This is great for me. I'm a non home owner in Southern California I've seen this coming since the beginning of the decade even though the road sign were in place late 90s. I just wish I had the capital to cash in.