While stopping short of predicting a full-blown double dip in the broad economy, Whitney said one is certainly in store for the housing market.
“People doubt there’s a double-dip in housing,” she said. “It’s amazing.”
As far as consumer spending, we’ve discussed this. One of the greatest expenses is housing. If that is factored out, you have extra money, discretionary spending. That is one of the biggest reasons our economy is doing as well as it is.
Should be interesting to see what’s going to happen when people are forced out of their free-living situation and have to start digging in their pockets for housing again.
Even if they manage to get loan mods, that’ll mean less money eating out and/or shopping.
