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Economics question -- housing market
Posted by vvk (more from vvk) on Fri, 15 Dec 2006 12:17:00
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I must say that I feel stupid these days. I hear that housing market is in decline and this is bad for the economy. Specifically:
"...a cooling U.S. housing market weakens Americans' appetites for foreign-made electronics, clothing and other exports..."
This came from an article I read on finance.yahoo.com today.
I really fail to grasp why falling housing prices are bad for the economy. To me that signals lower inflation and that's always a good thing, isn't it? You can buy more with your hard earned dollars, right? You have more discretionary income because your housing payment is lower? More people can afford to buy a house? How is this a bad thing?
Can someone explain this in layman terms? Please?
posted by 216.244.1...
Posts in this Thread:
- Economics question -- housing market, vvk, Fri, 15 Dec 2006 12:17:00 <-- Viewing This Message
- Thanks for answers (+), vvk, Mon, 18 Dec 2006 09:37:43
- Its an equity thing, DivrDon , Fri, 15 Dec 2006 16:00:46
- Re: Economics question -- housing market, ursaw, Fri, 15 Dec 2006 15:20:13
- When house values are high, people feel rich, Dave in Houston, Fri, 15 Dec 2006 13:05:28
- Harder to borrow for luxuries with declining market, Jeff B, Fri, 15 Dec 2006 12:38:42
- I am NOT an economist..., PGAero , Fri, 15 Dec 2006 12:36:53
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