Free Republic

With new home slaes down 10.5 percent in February, and with home prices declining for the fourth month in a row, it's high time for a sober look at the consequences of a major housing correction. The Federal Reserve, Wall Street economists, and other observers of the U.S. economy are closely watching the housing market because it has been a key driver of economic growth over the past several years. Roughly a quarter of the jobs created since the 2001 recession have been in construction, real estate, and mortgage finance. Even more important, consumers have withdrawn $2.5 trillion in equity...

Within days of re-election, President Bush was greeted by a wave of economic news -- including strong job-creation data -- that could strengthen his hand as he prepares ambitious plans to overhaul the tax code and revamp Social Security. Prices on oil futures last week fell below $50 a barrel, a potential source of comfort for consumers and businesses that have been squeezed by the rising cost of energy. Stock prices rallied, a sign that economic uncertainties are easing with the end of the contentious election. Chain stores reported better-than-expected sales for October. The dollar declined, which could bolster exports...