Foundering American property market could spark global slowdown worse than dotcom collapse
Heather Stewart, economics correspondent
Sunday August 27, 2006
‘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.
House prices have been rising at unprecedented double-digit rates in recent years, giving homeowners massive windfalls and supporting a wave of investment in new construction. However, the number of unsold new homes is now at a 10-year high. more
Economy is floundering? You mean giving away money to rich people doesn’t help everyone? That’s hard to believe. (dripping with sarcasm)