The U.S. economy will only recover when the value of buildings stop falling. And that day has not arrived yet.
“The crisis can not end completely until the value of buildings in the U.S. at least to stabilize,” says Alan Greenspan, who continues to dissect data on the housing market with the same interest when he was chairman of the Federal Reserve, the central bank American.
The neatest little guide to stock market investing pdf shows that there is a clear correlation to home prices and the movement of the overall stock marke.For two thirds of American households that own their own homes, the address is the most valuable asset. The more the value of the house falls, the lower the wealth of these families, and they will consume less and borrow more. For builders, the smaller the value of the house, less homes are built and fewer workers are hired. For many banks and other financial institutions, mortgages, mortgage-backed securities guaranteed by those instruments and remain a huge headache. The lower the value of the property, worth less these loans and investments that ultimately weaken the foundation of the entire financial system.