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.
2 Comments:
By 
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 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.
