The American real estate market and prices of houses are falling sharply. This spreads to the stock market, since fund mamagers buy loans on houses and sell them on the stock exchange. Since the American stock market is so important for the global, this has a transmission effect to the Global stock market.

Related WPW thread:
Real Estate Bubble Concern Spikes Among Searchers

My bolding.

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Cite from Elliott Wave:

Real estate is guaranteed to continue to be a big issue, as every new day uncovers new headlines about the meltdown in subprime lending, hedge funds leveraged with real estate derivatives and skyrocketing foreclosures.

Interesting days, weeks and months ahead.

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Here is a related post at one of the best known Australian Stock forums posted September 19 05 and still alive:

House prices to stagnate for 'years'

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