Of course with so many European economies dependent on government spending for growth, these budget cuts will lead to deeper economic contraction, more job losses, higher unemployment, and lower tax revenues.
The delicate issue now is how to manage excess debt without causing a convulsive situation such as additional job losses and a contraction of our economy.
The NAHB is worried that the contraction in construction lending by community banks will force more small builders out of business resulting in more job losses industry wide and across the country.