Stocks head downtown as Housing goes bust!

The housing market seems to be dragging down Wall street into new depths of recession as the home sales fell by as much as 2.6%. The fall in the sale of homes is not something that is totally unexpected but what is worrying many is the exposure of Countrywide financial corp as it seems that the company in question may soon have to face a fresh round of loan defaults.
The smell of recession seems to be blowing high and low in Wall street for the moment and it is going to take some really adept moves by the FED's to counter this.

With the Lehman Brothers seeing a rapid decline in the earnings power of Countrywide, that news saw the stocks decline by as much as 15%. At the rate it is going, pretty soon, Countrywide would have lost all the gains it had made in the last 3 years. And coupled with this , the news of the 'not so great' quarterly results from KB Home, has put all of Wall street on notice!