Authored by Peter Reagan,

Real estate and construction are considered bellwethers of the overall economy. Recently they're not looking good – and this isn't an isolated issue. It's a warning sign of a crisis that could ripple through the entire economy…

The housing market is a massive portion (about 1/6th!) of the entire U.S. economy. About two-thirds of American families own their home – and for most, it's their single biggest financial asset (as well as where they sleep). Home equity represents a tremendous share of household net worth – about half for the typical family! More of our national wealth is tied up in housing than any other single asset class.

So any unusual or unexpected developments in the real estate market get attention. Because they're extremely important for the majority of Americans – far more important than abstractions like GDP or unemployment.