Not only are most Americans home owners they also own stocks. Most of them own them thru 401k's or mutual funds that they bought themselves. I know these investors have noticed the sharp decline the last couple of months. The credit crunch is what is being blamed for this decline. This credit crunch in my opinion is because they loaned money to people using unique vehicles to qualify these people. This excess housing that was built is now on the market for sale and some are in foreclosure. This glut of housing has affected homes prices nationwide. If we are in a true bear market for stocks we are in for a while rough ride for some time. This will keep home prices down as well. This dilemma will keep us in quite a bind for a while I believe.
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