Saturday, March 01, 2008

Markets Fall on Drumbeat of Grim Reports - New York Times

Markets Fall on Drumbeat of Grim Reports - New York Times

"You can almost draw it out in a diagram. With home prices going down, consumers cut back on spending. If consumers cut back on spending, the economy weakens further. If the economy weakens further, fewer people are able to afford mortgages so home foreclosures increase."
BERNARD BAUMOHL, a managing director at the Economic Outlook Group in Princeton, N.J.

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