From The Observer, 8/27/06:
http://observer.guardian.co.uk/business/story/0,,1859024,00.html
US housing slump fuels crash fears
Foundering American property market could spark global slowdown worse
than dotcom collapse
Heather Stewart, economics correspondent
Sunday August 27, 2006
The Observer
The downturn in the US housing market will force businesses to slash
73,000 jobs a month in the new year and could be more damaging to the
world economy than the dotcom crash, economists have warned.
After official figures last week showed that the number of new homes
sold in July was 22 per cent lower than a year earlier, while prices
were almost flat, fears are mounting that the 'orderly' housing
slowdown predicted by the Federal Reserve will become a full-blown
crash.
'Things do seem to be getting worse very quickly. Freefall is a strong
word, but I think it's the right one to use here,' said Paul Ashworth,
chief US economist at Capital Economics.
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We seem to be in for a bit of stormy economic weather.
Harry
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