Spillover...does Wall Street Count?

In my last post about the housing slump continuing, I quoted from the Fed Chief saying (once again) that the spillover from the housing slump is not spilling over into other areas of the economy. Than along comes CNNMoney with a headline "Wall Street walloped, again" and an intro paragraph that reads "Stocks slumped Wednesday afternoon as worries about inflation, the housing market and rising interest rates gave investors a reason to bail out after the recent rally." I keep scratching my head...no spillover? It seems like the housing market and the lending market are both such huge parts of our economy, that problems cannot help but spill over into other areas of our economy. But then again, I'm just a country boy.

Here's the CNN article if you want to take a look. http://money.cnn.com/2007/06/06/markets/markets_0330/