Will be interesting to see if the housing downturn (and financial worries) will show up in tomorrow's GDP release. In the morning, check in at EPI.org to see Josh Bivens' take.

Home Prices Are Down, and So Is Confidence - New York Times

Home prices dropped again in August and consumer confidence remained at the lowest level in two years, reinforcing investors' bleak expectations for the economy, a new report showed today. The trouble signs came as Federal Reserve policy makers began a two-day meeting that could culminate in an interest rate cut.

The Case-Shiller survey found that prices of homes across 20 major United States metropolitan areas fell 4.4 percent for the 12 months through August, the steepest drop since 2001, when the survey began. The measure, which is released by Standard and Poor's, is considered more accurate than comparable government reports and offers investors more evidence that the housing sector is facing its worst stretch since the early 1990s.

Will GDP be able to shrug off the housing/credit crunch? | Posted October 30, 2007 06:31 PM by John Irons