This might be a good buying opportunity. Just make sure you don't put all your eggs in the same basket.
Economy's Summer Sprint Unlikely to Last Thursday December 20, 2:34 PM EST WASHINGTON (AP) — The economy sprinted ahead at its fastest pace in four years during the summer, although it is expected to limp through the final three months of this year as the housing and credit debacles weigh on individuals and businesses alike. The Commerce Department reported Thursday that gross domestic product grew at a 4.9 percent pace in the July-to-September quarter, unchanged from an estimate made a month ago. The performance was especially impressive given that the housing market plunged deeper into despair. Builders slashed spending on housing projects in the third quarter at an annualized rate of 20.5 percent, the most in 16 years. Economic growth in October through December is expected to have slowed to a pace of just 1.5 percent or less. Some fear economic activity might even contract slightly. Gross domestic product measures the value of all goods and services produced within the United States. "The economy is slowing down so fast this quarter you can see the skid marks as it slams on the brakes," said Stuart Hoffman, chief economist at PNC Financial Services Group. ... and now you have the full story.
Merrill-Lynch not exactly bullish... Executive summary of the Economic Commentary titled “Housing deflation could be a multi-year process.”
Another shoe starts to drop... how many local governments spent like the housing prices would keep going up? Now, they'll have to cut people and services at a time when people will need it the most and the Feds are broke as well. I always thought the idea of funding schools and local stuff on property values is a bit skewed.
