NOBEL PRIZE WINNER PREDICTS SLOWER U.S. ECONOMIC GROWTH

Bloomberg.com reported that Joseph Stiglitz, the Nobel Prize winner in economics in 2001, speaking before a Japanese audience said that the decline in the U.S. housing market and drop in prices would result in reduced consumer spending which would slow the U.S. economy, and therefore the world economy.  He said a significant portion of the $850-$950 billion in home equity loans was used in consumer spending which kept the U.S. economy strong.  With the decline in prices and increase in foreclosures this spending would decline and that decline would result in a slower U.S. and world economy.