Falling Home Prices Could Devastate US Economy theTrumpet.com, OK - As home prices fall and equity vanishes, so will capital gains, equity extraction, consumer spending, and a big chunk of the US economy. ...

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Reuters - The slowdown of California's housing market has become a drag on the state's economy as home building and financing payrolls thin, but the most populous U.S. state will avoid recession through 2008, according to a UCLA Anderson Forecast report.