Sunday, December 11, 2005

GDP growth with and without mortgage extraction

"Calculated Risk," has a fascinating chart which demonstrates the enormous effect that mortgage refis have had in holding up GDP. The impact of the bursting of the housing bubble would greatly diminish expected growth rates due to the direct effect on a loss in housing and construction related employment, and indirectly on personal consumption expenditures.

See also: LA Times

: Arizona Daily Star


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