What could happen if housing market slows
This is an interesting prediction repeated through the AP Wire:
Federal Reserve Chairman Alan Greenspan sees signs of “froth” in some local housing markets, but says overall the nation doesn’t appear to be in a housing bubble that could potentially burst.
Such a sanguine prediction might do little to calm the nerves of anyone who remembers when the dot-com stock boom went bust five years ago and how that led to a market-wide bloodbath. Investors lost wealth that they have yet to recover and Wall Street’s collapse played a significant role in pushing the economy into a recession.
That’s something for homeowners today to consider. It could be that even if there isn’t a housing bubble in their backyard, they may still get caught if demand slows somewhere else. read more>
