Reply #49: good observations

[kineneb]

a chain reaction is starting...

1. housing sales slow, for various reasons
2. housing inventory goes up
3. industries dependant on construction and housing sales begin layoffs
3a. banking is affected (as per cliss's post)
3b. contractors stop building, no jobs
3c. suppliers to contractors affected- building supplies, etc.
3d. title & loan companies shed workers
4. unemployment of middle to upper-middle class workers affects economy
4a. fewer discretionary goods purchased
4b. less money circulates as fewer people have jobs/money
4c. social services are strained more to deal w/layoffs
5. whole economy slows greatly
5a. more people loose jobs due to lose of demand
5b. no "onshore" manufacturing jobs left to shore up economy


...and so on, in downward spiral. This is only the beginning.