Wednesday, October 27, 2010

If Housing Double Dips, Consumer Confidence Is Toast

If Housing Double Dips, Consumer Confidence Is Toast: "

Housing and consumer confidence weren't always joined at the hip, but that's because home values always rose regardless of the economic cycle.


That's changed since 2007, as Doug Short notes in this chart. The two clearly move together.


So if housing double dips -- as yesterday's Case-Shiller made abundantly clear is a possibility -- consumer confidence is probably shot. And so, probably, is the recovery.


chart

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