Doesn't it seem some days we HP'ers know what's going to happen before it happens?
As we've discussed for months and months, the housing crash and it's associated issues will now crash the US economy and GDP.
Millions of REIC will go unemployed, the debt spigot will be turned off, wild spending via HELOC's will dry up, the negative savings rate will reverse, and the consumer-based US economy will now dramatically slow, first into recession and then into who knows what to call it.
Are you ready?
Housing market hinders economic growth
Economic growth slowed to a crawl in the third quarter, advancing at a pace of just 1.6 percent, the worst in more than three years.
The latest snapshot of the economy, released by the Commerce Department on Friday, showed that the slumping housing market figured prominently in the economy's dramatic loss of momentum. Investment in homebuilding was cut by the biggest amount since early 1991.
The reading on gross domestic product was weaker than the 2.1 percent pace many economists were forecasting.
"The housing bubble burst and that really knocked down growth," said Joel Naroff, president of Naroff Economic Advisors.
Treasury Secretary Henry Paulson struck a similar note. He said the housing boom over the last five years was "clearly unsustainable".