Getting Graphic is a semi-sort-of-irregular collection of our favorite BIG real estate-related chart(s).
Here’s a great summary of the state of the housing market, and its interaction with the consumer.
Bear markets begin when growth in real consumer spending peaks and beings to slow. I think I made the case above that consumer spending is going to face a real uphill battle as cash-out financing slows down, higher energy costs don’t go away, higher interest rates translate into higher mortgage and credit card payments on top of legislation requiring higher minimum payments on credit card balances.
Slower consumer spending and recessions happen “on the margin.” By that I mean that consumer spending does not stop. It just slows down and maybe even stops growing on a year over year basis. That pushes profits down, which means company after company starts having earnings misses and stocks start to drop.