Tuesday, December 22, 2009

Our interconnected world 

Lest you wondered why foreigners care so much about the health of the American economy: Europe shares hit 14-month high on US home sales data.


By Blogger Purple Avenger, at Tue Dec 22, 12:00:00 PM:

Sales of EXISTING houses don't generate much demand for jobs or materials. All that happened here is some banks swapped out some bad loans for ones that might prove less bad in the future.  

By Blogger TigerHawk, at Tue Dec 22, 12:10:00 PM:

Agreed, Purple, but sales of existing homes do influence the extent of further bank losses, which in turn has a 10-fold impact on lending capacity.  

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