The news from the housing market this week is bad. Really bad. House prices today are lower in most of the country than they were in the dismal month of April 2009; we are now in the second dip of the double dip housing downturn.
This doesn’t just mean that President Obama’s re-election is in trouble. It doesn’t just mean that stocks and the dollar may fall. It doesn’t just mean that unemployment will stay high for a while and that whole economy may follow the housing market back into the tank for a second recession.