Review on House of Cards

In the article, "House of Cards," by Andrew Laperriere, the stock market experienced one of the largest drops since the 9/11 attack. Because the subprime mortgage market has poor credit ratings and is giong to spread, the job losses in construction and real estate could start taking place. This boom didn't take place until the Federal Reserve slashed interest rates in 2001. The lower rates cut monthly payments, and boosting demand for housing and pushing up home prices. The tighter credit conditions are only just beginning, so the worst part is probably in our future. The issue economists and investors are trying to figure out how much lower home prices and rising delinquencies will reduce employment, business investment, consumer spending, and overall economic growth.