Housing Double Dip Double Dip May Lead Recession

There will probably be a double dip in the housing market. Now that all the tax breaks for homeowners have gone and modification programs of the mortgage to an end, it is likely that house prices will fall over and turn up the inventory. The question is whether this will lead to double-dip recession in the economy.

The general economy has experienced a similar trend. The stimulus money the government has injected money into the economy. The same stimulus may be wound up, but the economy is not really new liquidation.

This is mainly due to lack of recruitment. The jobs report shows unemployment still high and not much work. Studies show that companies are reluctant to hire because they are nervous about how the tax increases and reform of health care will affect their business.

The housing market has led to the 2008 financial crisis. mortgage backed securities and short-traders who caused the whole is not so important part of the economy they once were. Still, the real estate market may again be a leading indicator of where the economy is going.

On top of that, many small, small investors abandon the stock market because it is too risky for them. Now turn their investment strategy toward safer investments such as bonds and treasury bills.