Sluggish Economy Due To Housing Slowdown According To Bernanke
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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
It probably is a really good time to buy real estate - monthly payments are about equal to market rents ...
The part about the inventory is right on but in my area they are mostly low end and beat up ...
I worked for this man, he is a great con man and has done this in more than States then ...
You're right. If you come from Central Jersey (as the Boss and I do), you go to Florida at some ...
Maybe it was kryptonite...
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By Mike ...
I couldn't agree more.
The newspaper has always "stuck" it to the real estate agent with rates that were much higher ...
By the way, homeowners trying to get short sale approval should be aware that lenders are comparing the initial loan ...
Ouch! Thankfully I haven't come across anything like that yet. We normally don't have situations like that in ...
well, the guy was here illegally.
serves him right. 
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