Red flags everywhere: Lumber crash signals housing slump, hidden delinquencies stir alarm in banks

Housing is the foundation of the economy, and when it starts tipping downward, jobs, banks, and local economies feel it immediately. Hidden delinquencies in mortgages and corporate loans mean that a correction could hit like a hidden avalanche, catching lenders, investors, and homeowners off guard. This is a warning that the financial system may already be weakening beneath the surface.