Housing Prices Continue To Drop...
from The Economic Ninja Hosted by The Economic Ninja
According to a recent article on Business Insider, the collapse of Silicon Valley Bank has had an impact on companies with bad credit and caused a surge in the spread on junk-rated bonds relative to US Treasuries. However, Credit Suisse Chairman Axel Lehmann has stated that the contagion effect from the collapse of Silicon Valley Bank is local and contained. Meanwhile, former FDIC Chair William Isaac has predicted that more bank failures are on the horizon amid the fallout from the collapse of Silicon Valley Bank. Regarding Bob Shiller's warning to delay home purchases due to falling prices, no direct connection has been made to the collapse of Silicon Valley Bank or Credit Suisse. It is possible that falling home prices could be a separate issue from the banking industry, and Bob Shiller's warning may be based on factors such as changes in the real estate market, supply and demand, or economic conditions.
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