Investors couldn’t run from the bulls fast enough today on Wall Street. In a quick departure on poor housing numbers and increasing credit woes, the Dow closed down more than 300 points or about 2.2 percent. The question is – will the housing concerns spread to the broader economy?
The Fed’s Beige Book this week pegged the economy as growing at a modest pace and jobless claims fell last week to the lowest level in two months. But the street’s plunge might be a harbinger.
It stands to reason that with the housing sector in a tizzy, builders have something to worry about. That’s kicking up more concern about the future of the workers who keep the home-building engines fired up. Or for that matter, the employees of all the supporting industries in the housing sector.
The job market is on decent ground but with foreclosures expected to rise, trouble might be on the horizon. In a report released by Moody’s Economy.com, the status of mortgage loans might take a nosedive through the end of the year with the correction in the housing market. It indicates the housing and mortgage markets are fragile and that a slight economic mis-step could trigger problems later on.
What does this scenario mean for the workforce across the board? I get the feeling that worklife balance will be a bit of a stretch in the days to come. Seems like a stressful time is upon us. A tipping point of sorts. Just because someone has a job, doesn’t mean they’re happy. With the weight of a mortgage over their head, seems productivity will come second to survival.
