[quote=AN][quote=spdrun]Housing is shaky as it is. A generalized slowdown affects general confidence and put the brakes on it.
It sure wasn’t growing much around 2001-2. Last time, housing affected everything else. This time, it might be the other way around.[/quote]
But it didn’t crash. It wasn’t event flat. So, why did you pick 2001? I wouldn’t mind if today is like 2001.[/quote]
Actually, home sales and prices did decline when the stock market bubble burst, but the Fed was quick to manipulate rates and restart a new bubble in housing. Housing prices were already getting overvalued in 2001. I think spdrun chose 2001 because that was the bursting of the bubble just prior to the 2007/2008 bursting of the credit/housing bubble. We still have a credit bubble because of all the manipulations, IMHO, it’s just a matter of which assets are most affected by the surplus credit.
