“The US Federal Reserve will need to slash interest rates three times this year as the housing slump goes from bad to worse and the American consumer begins to buckle, Goldman Sachs has warned. ‘Americans have shown a complete lack of self-control. The personal savings rate is at its lowest point ever, and has actually been negative since April 2005.’”
“‘We believe that housing will soon become the proverbial ’straw that breaks the camel’s back’,’ said David Kostin, the investment bank’s US strategist.”
All PS was saying was the same thing this San Diego realtor was stating:
“While the absolute number in inventory has declined the important inventory supply has increased slightly to 314 days. This is due to sales declining faster than the decline in inventory”
