PRETTY UGLY HOUSING SLUMP LEADS TO STOCK MARKET DOWNTURN
By Led Black
The writing has been on the wall for some time now but it seems that the recent volatility of the stock market has pretty much confirmed that the housing bubble has finally burst. What happens now? What will the fallout be? All depends on what steps are taken by the Fed and the government to correct the problem. The wrong move or the right move done at the wrong time could make matters worse. In our increasingly connected world the missteps of one country, especially the world’s lone superpower, the U.S., has ramifications which are felt the world over. The hubris and greed which led us to this predicament is succinctly explained in an excellent article on how we got to this point written by Mad Money’s James Cramer in the latest New York Magazine. As you read this, the homes you own, your stocks and your 401K are losing value and pretty soon might start hemorrhaging money. If astute and timely steps are not taken we could pretty much be headed for a recession. An expected wave of foreclosures in the coming months will certainly make matters worse. Vigilance!!!
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