Growth Projections for US Economy 2007

by **Cobra_Strike** » Wed 27 Dec 2006, 16:18:06

It will be weak until the Fed drops rates again, reheating the housing industry...

by **TommyJefferson** » Wed 27 Dec 2006, 16:27:11

"...Inflation, though a bit above the Fed’s “comfort zone” of 2 percent, is still relatively tame by historical standards."

Right.

He was smart enough to add this caveat:

"A serious crimp in the global [petroleum] pipeline could send prices spiking, creating a serious inflation problem that would send economists scrambling to re-write their forecast spreadsheets.
"

Yes. I suppose it would.

by **Cobra_Strike** » Wed 27 Dec 2006, 16:30:01

$this->bbcode_second_pass_quote('ElijahJones', '')$this->bbcode_second_pass_quote('Cobra_Strike', 'I')t will be weak until the Fed drops rates again, reheating the housing industry...

by **Cobra_Strike** » Wed 27 Dec 2006, 16:40:50

And not just foreclosure, all the newly built homes too...I was very confused about were all the money to buy these homes would come from. The housing numbers seemed to have helped the market today.

by **Cynus** » Wed 27 Dec 2006, 16:54:13

Many are saying that the fed's rate increases are what have slowed the economy and perhaps pushed us into a recession. But aren't rates of 5% very low by historical standards? What does it say about the economy that interests rates of only 5% are sufficient to cause a recession?

by **Kristen** » Wed 27 Dec 2006, 22:09:39

Why worry about it guys. Many civilizations have risen to great power and crumbled shortly after. People managed than and we will manage too.

by **dukey** » Thu 28 Dec 2006, 00:21:12

$this->bbcode_second_pass_quote('', 'M')aybe it is a hope that the worst can be avoided if properly understood beforehand.

by **Cobra_Strike** » Thu 28 Dec 2006, 16:23:41

$this->bbcode_second_pass_quote('Kristen', 'W')hy worry about it guys. Many civilizations have risen to great power and crumbled shortly after. People managed than and we will manage too.

by **Euric** » Thu 28 Dec 2006, 19:40:43

$this->bbcode_second_pass_quote('Cobra_Strike', 'I')t will be weak until the Fed drops rates again, reheating the housing industry...

by **Euric** » Thu 28 Dec 2006, 19:44:51

$this->bbcode_second_pass_quote('Cobra_Strike', '')$this->bbcode_second_pass_quote('ElijahJones', '')$this->bbcode_second_pass_quote('Cobra_Strike', 'I')t will be weak until the Fed drops rates again, reheating the housing industry...

by **MrBill** » Fri 29 Dec 2006, 04:32:54

Home ownership is going up NOT down, which is a sign that home ownership is STILL affordable. Strip-out illegal immigration and take-out a few unaffordable markets like California and the picture improves. Prices went up due to demand outpacing supply NOT vice versa. Now that is correcting. Blame it on money supply if you want. But the market was fuelled by would-be home owners who think real-estate is the best investment because it can NEVER go down in price. THAT is what is driving housing prices above equivalent rents. Why many households with 2.5 children want and need to live in a house with twelve rooms is another story.

by **Doly** » Fri 29 Dec 2006, 06:40:54

$this->bbcode_second_pass_quote('MrBill', 'H')ome ownership is going up NOT down, which is a sign that home ownership is STILL affordable.

by **MrBill** » Fri 29 Dec 2006, 07:18:06

$this->bbcode_second_pass_quote('Doly', '')$this->bbcode_second_pass_quote('MrBill', 'H')ome ownership is going up NOT down, which is a sign that home ownership is STILL affordable.

by **EnergyUnlimited** » Fri 29 Dec 2006, 10:37:23

$this->bbcode_second_pass_quote('MrBill', 'S')orry, no new X-box games for little Jimmy. Daddy has to pay the mortgage this month. Tough luck! If someone cannot get by on their double income then I would suggest it is them and not the economy that is at fault.

by **MrBill** » Fri 29 Dec 2006, 11:15:02

$this->bbcode_second_pass_quote('EnergyUnlimited', '')$this->bbcode_second_pass_quote('MrBill', 'S')orry, no new X-box games for little Jimmy. Daddy has to pay the mortgage this month. Tough luck! If someone cannot get by on their double income then I would suggest it is them and not the economy that is at fault.