Its all encapsulated here today by a source as sombre as The Economist:
The bust begins
From Economist.com
Housing-market woes spread to Britain
FOR years the housing market in Britain has defied gravity. For a few months in 2004 and 2005 house prices moderated, before taking off again. But now, finally, tighter credit and overstretched household budgets are pulling prices down.
And particularly draw your attention to:
A period of falling house prices has been long overdue and may be welcomed by those who have been priced out of the market. But past experience suggests that it is likely to inflict economic damage by slowing consumption and GDP growth. When the market slowed in 2005 household spending rose by only 1.5%, its lowest since 1992. That augurs ill for Britain’s economic prospects
The 2005 housing market SLOWDOWN damn near drove the economy half way to recession. Just 3 years later its fairly obvious where the current much much sharper deeper slump will send it.
You know how sometimes its only your best friend that will tell you a horrible truth.....
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