Does the closing and bankruptcy of furniture stores signal an economic downturn?
This is a trickle down effect of the sub-prime mortgage mess. The primary victims are the home builders and the industries closely related to new home construction are the secondary casualties. Not much demand for new furniture if new home sales are in the tank. The verdict is not in as to whether this will lead to a recession – but many on Wall Street feel that it will lead to a downturn or a recession. The Federal Reserve bank is trying to do whatever it can to prevent a recession by decreasing interest rates and pumping money into the banking system.
