US housing slide threatens to drag economy into recession
NEW YORK/WASHINGTON: Housing led the US out of seven of the last eight recessions. This time, it may kill the recovery. Home sales collapsed after a federal tax credit for buyers expired in April.
Since then, the manufacturing-led expansion, which began in the second half of 2009, has been waning, with jobless claims rising and factory orders falling.
“If foreclosures continue to mount and depress home prices, that could send the economy back into a recession,” said Celia Chen, an economist who tracks the industry for Moody’s Analytics. “The housing market and the broader economy are closely intertwined.”
More bad economic tidings: a potential double dip recession led by the still deeply troubled housing market. It's also not good news for the residents of Privatopia and future Privatopian developer/kings.