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Contributed by mm | August 17, 2005 9:11 AM PST
Even a minor correction will have lots of casualties.
From Wall Street Journal:
Economists disagree about how much damage a housing downturn would inflict on the economy. Mr. Zandi hopes that strong job growth in other parts of the economy will cushion any blow from housing. But, he says, the risks of harm to the economy will grow if house prices keep surging for another year or two.
Predictions that the housing market would falter soon have proved premature repeatedly. Still, many economists believe the boom is now peaking or will do so within a year or so. Few expect a sharp fall in prices nationwide but lots of economists think prices will decline at least modestly in some of the cities along the East and West coasts, where buying has been most frenzied.
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Don't Forget Home Equity (August 20, 2005)
This makes total sense. Home equity should be included in all net worth calculation and investment decisions.
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