High-End Housing Market hit by Market Crash

High-End Housing Market Ravaged by Stock Selloff

For wealthier Americans, the free-fall in stocks is not only ravaging their portfolios-it's taking a huge bite out of the value of their homes.
"The high-end market relies on equities," says Walter Molony, spokesman for the National Association of Realtors. "If stocks are doing well, so too does high-end housing."
Though only 2 percent of the overall housing market, high-end home sales have seen a dramatic drop, according to Molony. Homes valued at $750,000 or more plunged a whopping 47 percent in the year ended in November. By comparison, homes valued at $400,000 or less fell by only 3 percent during the same period.
A look at the markets during the same time period shows the Dow Jones fell 33.1 percent, while the S&P shows a 37.5 percent drop in value.
Real estate professionals agree that sliding markets and a ravaged economy are hurting prospective high-end buyers and sellers. And that means prices will likely decline even more before there is any recovery. Read article... http://finance.yahoo.com/news/HighEnd-Housing-Market-cnbc-14235694.html

Japan factory output plunges, jobless rate jumps

Japan factory output plunges, jobless rate jumps

Recession spreads in Japan as factory output plunges, joblessness jumps, family spending falls

TOKYO (AP) -- The pain of Japan's recession is spreading from the factory floor to the living room, as December figures showed companies slashed output at a record pace, the jobless rate surged and household spending fell sharply.
Industrial production at the nation's manufacturers plunged 9.6 percent in November, the largest drop since Tokyo began measuring such data in 1953, the government said Friday. A survey predicted further declines of 9.1 percent in January and 4.7 percent in February.
Meanwhile, Japan's unemployment rate jumped to 4.4 percent from 3.9 percent in November -- the biggest increase in almost 42 years, according to the Ministry of Internal Affairs. Household spending dropped a worse-than-expected 4.6 percent in December, falling for the 10th straight month.
The global slowdown has crippled big-name manufacturers like Sony Corp. and Toyota Motor Corp., who rely heavily on overseas sales to drive growth. The yen's surge over the past few months has dealt a further blow to the world's second-largest economy by eroding exporters' overseas earnings.

Japanese electronics giant NEC Corp. says it plans to slash at least 20,000 jobs worldwide in an effort to cut 80 billion yen in costs over the next two years.

The Nikkei dropped 3.12 percent today, below 8000. Honda cuts annual profit forecast.