Dan Froomkin of Nieman Watchdog writes Monday about the lack of coverage about declining home prices.
“This is due to what Baker and other economists call the ‘wealth effect.’ It reflects the fact that when you are feeling rich, you tend to spend more, and when you are feeling poor, you tend to spend less. So, Baker says, for every $1 of housing wealth lost, consumption can be expected to go down 5 to 7 cents.
“What that means is that another trillion-dollar loss in housing wealth — something that could easily happen by next fall — translates to $50 billion to $70 billion less consumption; sort of an anti-stimulus.
“That, in turn, simply adds to the unemployment problem. And when you realize that you can’t stabilize the housing market without people being gainfully employed, you see the vicious cycle we’re in.”
Read more here.
Former Business Insider executive editor Rebecca Harrington has been hired by Dynamo to be its…
Bloomberg Television has hired Brenda Kerubo as a desk producer in London. She will be covering Europe's…
In a meeting at CNBC headquarters Thursday afternoon, incoming boss Mark Lazarus presented a bullish…
Ritika Gupta, the BBC's North American business correspondent, was interviewed by Global Woman magazine about…
Rest of World has hired Kinling Lo as a China reporter. Lo was previously a…
Bloomberg News saw strong unique visitor growth to its website in October, passing Fox Business…