Sluggish Economy Due To Housing Slowdown According To Bernanke
Bernanke was at Congress today and he told them what we already knew. The sluggish housing market is acting as a braking mechanism on the economy as a whole and will do so until the worst of the credit crunch is over. The rest of the economy is still going strong, but the effects of the housing slowdown will overtake the rest of the market.
Speaking to the Joint Economic Committee of Congress, Bernanke offered a cautious outlook, suggesting the world’s biggest economy could face more headwinds from the housing slump even while oil prices threaten to push inflation higher.
Bernanke said Fed policymakers decided last month to cut interest rates because they “expected that the growth of economic activity would slow noticeably in the fourth quarter from its third-quarter rate” of 3.9 percent.
“Growth was seen as remaining sluggish during the first part of next year, then strengthening as the effects of tighter credit and the housing correction began to wane.”
Bernanke’s comments were in line with predictions from many private economists who see a darker economic picture despite a strong growth rate in the second and third quarters.
The Fed chief said the contraction in housing-related activity “seemed likely to intensify” because of tighter credit, and that consumer spending is likely to grow more slowly in view of higher energy prices, credit issues and continuing weakness in housing. via AFP
I like your analogy in this article. The real estate economy really is like a patient who you cannot ...
Real Estate is hyper-local. Every market is different. Phoenix has already hit bottom and is starting to recover. We have ...
Great to hear that the big boys
are predicting recovery sooner than
most think.
Thanks for the value! 
I agree--good analogy. You have to crawl before you can walk. Right now, at least in Austin, many people would ...
I live in the Philippines and I am glad we are not on the lists... 
I have a few Litograghs of Presidents homes , made by Richard V. Sebring. yr. 1990 Do they have any ...
I see the question I have, but no response. I do not have a for sale sign up ...
I'll add mine to the list too. This is happening in Kansas City, Missouri as well now.
We already knew ...
