Boy, am I behind. This one is from 5 days ago, with retail sales showing a decline of 2.8% over September and 4.1% over October a year ago. I love the title, Conspicious Correlation.
Anyway, the author is making the argument that retail spending is proving to be correlated with the housing market.
No question in my mind that people were spending more as they felt worth more as their homes went up in value and now that they are declining, well, they will spend less. The "I am going to down grade and bank the difference for my retirement plan" has taken a huge hit and people's behaviour will change accordingly.