Home Prices and the Economy

The meteoric increase in home prices in the United States during the past five years has been the mainstay of economic growth, not only in the United States but in the rest of the world as well. This year, home prices in the United States have reversed course. As the downward slide in home prices gathers pace in the months ahead, the U.S. economy is likely to weaken substantially. This weakness could contribute to the possibility of a global economic recession in 2007. (Read the whole long article on PINR, the Power and Interest News Report).
See also the article ‘Current U.S. Federal Reserve Policy Could Accelerate Inflation‘, of August 07, 2006, also on PINR.

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