The Housing Theory of Everything

The stock market reacted strongly to new numbers on existing home sales on Feb. 25. That reaction caught my attention, because it seemed bizarrely out of proportion to some flimsy, mediocre data. It's yet more evidence for a

The stock market reacted strongly to new numbers on existing home sales on Feb. 25. That reaction caught my attention, because it seemed bizarrely out of proportion to some flimsy, mediocre data. It’s yet more evidence for a “housing theory of everything.” Here’s the theory: The extent to which U.S. home prices fall will matter more than almost any other economic statistic this year.

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