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Could a Major Economic Slowdown be ready to follow the housing market Bubble burst?

Is it realistic to think with the economy already looking somewhat bearish that it's getting ready to follow suit with the housing market's big fizzle?

Public Comments

1. the slowdown is a real possibility, but it probably will not be a "major" one.
2. Is it realistic to think so? Sure. You can attach a whole cartload of reasons that an economic slowdown will follow the housing market's fizzle. - Decreased access to home equity credit -> Less consumption driven by cash drawn from home equity credit. - Lower home prices -> Decreased activity in homebuilding market And so on. Also, I've heard that housing market contractions are always a precursor to recession. Don't have a source for that one, but I'll bet if you search around you could find some good reference material and/or discussion on the topic. Hope this helps.