The Effects of a Downturn on the Real Economy

The housing market, the real estate market is the business cycle in the US. It's really one of the bits of the economy that just bounces up and down like crazy. The mood amongst house home builders is absolutely catastrophic right now. So this small aggregate which is like 4% of GDP is swinging by as much as 30 to 40%. This adds up to like a 1% swing in overall GDP from just this one sector.