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Collateral damage

By: Language: English Series: Economist ; 388(858) 5 July- 11 July 2008, 43-44(2)Publication details: 2008Subject(s): Summary: Article details how current threats to the housing market will affect the economy in wider terms. Details that the number of mortgages offered; property values and property turnover have all fallen dramatically in recent months and that these facts will significantly affect consumer spending. Posits that a fall in consumer spending could realistically lower GDP growth, at a rate determinded largely by the link between falling house values and consumer expenditure.

Article details how current threats to the housing market will affect the economy in wider terms. Details that the number of mortgages offered; property values and property turnover have all fallen dramatically in recent months and that these facts will significantly affect consumer spending. Posits that a fall in consumer spending could realistically lower GDP growth, at a rate determinded largely by the link between falling house values and consumer expenditure.