By Ken McCarthy
Real Econ TV
When house prices were going to the moon, government hacks and financial news media hucksters crowed about the “wealth effect” of the booming real estate market. Home owners felt “rich” so they borrowed and spent more which stimulated the economy – building supplies, contractors, furniture and carpet sales, etc. It was just one big party.
But now that the boom is going into reverse, few talk about the “wealth destruction effect” of a stagnant and declining housing market.
For those this the courage to look, here’s what the downside
of the slope looks like.
Watch The Golden State, not so golden