He also acknowledged a "growing conflict between downward pressure on economic growth and excess production capacity".

CNN: China's Wen leaves divided legacy

If economic woes worsen in Europe, the consequent downward pressure to the U.S. economy could impact housing similarly.

FORBES: How The Housing Recovery Will Take Shape In Coming Months

As interest rates on Treasury securities heads higher, so do the rates on mortgages and credit cards, adding further downward pressure on American living standards and suppressing economic growth.

FORBES: An Open Letter To House Speaker John Boehner

Foreclosures place downward pressure on house prices, contributing to a vicious cycle of economic pain.

ECONOMIST: Small signs of recovery cannot shift the general gloom