- Who sent you?
- A friend.

I don't have any friends.
- When will I see you again?
- Soon.

I promise.
There are several points of interests here.
First of all the fact,
that buyer impressive margin,
in new home purchases
took most of the brunt of that decline.

By this I mean that sales
of older homes,

indent on an individual basis
leaves considerably more room for negotiations.

Therefore in those sales we are more likely to find
that the official rise in mortgage rates...
The prospective rates of return
on high tech investments,

which led to a surge
in business capital spending

and significantly increased
the underlined gross rate of productivity.

The capitalization of these,
higher than expected
returns boosted equity prices,

generally beyond that expected,
by the enhanced rise in real income.
The elevated level of light vehicles sales for example,
has put more vehicles on the road
than the industry could sustain.

And even though demand for a number,
of high tech products was doubling
or tripling annually,

in many cases new supply
was coming on even faster.

Overall capacity
in high tech manufacturing industries,

rose nearly 50% last year.
Well in excess of it's rapid rate of increase,
accordingly the slowdown in the economy,
that began in the middle of last year intensified,
perhaps even to the point,
of growth stalling out
around the turn of the year.

As the economy slowed,
equity in prices failed,

especially in the high tech sector,
were previous high evaluations
were being reevaluated,

resulting in significant losses
in some investments.