by Calculated Risk on 11/08/2005 06:31:00 PM

Here are some interesting comments today on the impact of a housing slowdown on the economy:

Marketwatch: Bell 'Toll-ing' for housing market?
Toll Bros. warning fuels worries bubble set to finally pop

"If housing prices do not go up as much and interest rates are rising at the same time, fewer people will be able to take equity out of their homes," said Simon at Pimco.

"People are not only going to feel a lot less rich but they are going to have less money to spend," he added. "That can definitely hurt GDP."

Reuters: U.S. stocks fall on concern about housing slowdown

"A soft real-estate market is not good for the consumer. It is not going to bode well going forward," said Weston Boone, vice president of listed trading at Legg Mason Wood Walker. "You have to take into consideration the rising interest-rate environment. There aren't a lot of catalysts for positive sentiment in the market."

Investors Squeamish on Housing Outlook

"It would be a bit ominous for the economy if we see a dramatic slowdown in the housing sector," said Michael Metz, chief investment strategist at Oppeheimer & Co.

"The whole economy has been built on the wealth impact of the housing sector," Metz said.

What comes next? A slowdown in retail spending or real estate related job losses?