Is Housing Headed for a Fall?
http://www.washingtonpost.com/wp-dyn/articles/A13300-2004Apr14.html
By Robert J. Samuelson
Thursday, April 15, 2004; Page A25
If every silver lining comes wrapped in a dark cloud, housing could be
the economy's next big headache.
Just recently the Labor Department reported a hefty 308,000 increase
in payroll employment for March and also revised upward previous
figures so that monthly job gains have averaged 108,000 since
September. Good, though not spectacular, news: The recovery hasn't
been "jobless." Now the bad news. Assuming job creation continues -- a
big if -- the Federal Reserve will ultimately raise interest rates and
threaten the cheap credit that's bolstered home sales and prices. If
there's a housing "bubble," higher interest rates may pop it.
Robert J. Samuelson
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