As you know I have been predicting worse than expected consequences from the real estate fallout. Here is a Forbes article showing just how much the housing slowdown is affecting the overall economy. I also read that home problems cause consumers to be averse to buying new cars, so the ripple is spreading, hmmm, boats too.
Meanwhile here is another lesson that earnings count. Captial One Bank stock fell about 6% friday as the firm missed its earnings estimate. Oh it still made lots of money, just not as much as expected. The fallout continues. The lesson here is that in my lifetime there is rarely a 'soft landing' from a hard fallout in the economy.