1/11/07

Interesting angle on how housing impacts the economy

The Global Entrepreneurship Monitor, the world's most comprehensive study of start-up activity, found the percentage of people who were either thinking of going into business or had just started a new venture slid substantially in the US last year.

Rebecca Harding, executive director of GEM, said the decline in house prices had a particular impact in the US because people felt they had less of a financial cushion to support a business risk.

Wow! The housing debacle impacts production of goods needed in construction. The transport of these goods. Consumers, by reducing their capacity to borrow. Lenders. And now new start-ups. I find it very interesting.

George Dagnino
aka Peter Dag
www.peterdag.com

No comments: