November 10, 2008
...Given the massive run-up in housing values and the relationship between real estate wealth and consumption, the study's authors draw some stark conclusions about the coming years and the impact of declining household wealth on U.S. consumers. "The recent housing price declines reinforce the extensive losses in the stock market and layoffs in the financial and automotive sectors," said Bostic in a statement. "Taken together, they increasingly suggest that there will be longer-term effects for the U.S. and global economies."...