Quote:
Originally posted by turbo6bar
A housing market in a tailspin will throw the economy into a recession. Also, dollars extracted from housing equity weren't taken from other's savings accounts. Those dollars are borrowed via foreign central banks and a growing monetary base. See M3 numbers.
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Yes. This is the elephant on the economic dining room table that the business press has quickly forgotten about.
All the headlines are about oil, commodities and rate hikes, which is certainly more exciting than covering the same old housing news that they have been covering for three years.
Meanwhile the housing inventories continue to build. As I said in the "More Bad RE News" thread, we'll see in the autumn how far it will fall.