BloggingStocks

Greenspan Says Recovery Is Pausing, Sees Wealth Effect as Pivotal Growth Engine

Joseph Lazzaro — Fri, 02 Jul 2010 14:00:00 EST

To be sure, it was not a week for the bulls. Data for job creation, jobless claims, and manufacturing are signaling an economic slowdown.

However, one experienced observer of economic activity is arguing that all is not lost yet, regarding the still-young U.S. economic recovery. Former U.S. Federal Reserve Chairman Alan Greenspan argued that the recovery is undergoing a "typical pause" that will be structured by the performance of the stock market, CNBC reported.

Continue reading Greenspan Says Recovery Is Pausing, Sees Wealth Effect as Pivotal Growth Engine

Greenspan Says Recovery Is Pausing, Sees Wealth Effect as Pivotal Growth Engine originally appeared on BloggingStocks on Fri, 02 Jul 2010 14:00:00 EST. Please see our terms for use of feeds.

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Greenspan: Wealth Effect Reduces Need for More Stimulus

Joseph Lazzaro — Thu, 17 Dec 2009 16:40:00 EST

Filed under: Forecasts, Good news

That the year 2009 has had more than its share of disappointing economic developments would not be front-page news (or even top-of-the-web-site news).

But the return of the 'wealth effect'? That's almost stop-the-presses stuff: former U.S. Federal Reserve Chairman Alan Greenspan said 2009's bull market in stocks is reducing the need for additional stimulus actions, Bloomberg News reported Thursday.

Aided by U..S. stock market gains, U.S. household net worth increased by $2.7 trillion in Q3 to $53.4 trillion, according to data compiled by the U.S. Federal Reserve.

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Greenspan: Wealth Effect Reduces Need for More Stimulus originally appeared on BloggingStocks on Thu, 17 Dec 2009 16:40:00 EST. Please see our terms for use of feeds.

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Dispelling a few home buying / selling myths

Joseph Lazzaro — Mon, 04 Aug 2008 13:50:00 EST

Filed under: Housing, Recession

During the roaring 1990s, it was called 'merger Monday' -- due to the plethora of corporate mergers announced on the day, driven by the robust U.S. economy.

In the current sluggish (or perhaps worse) U.S. economy, it's becoming known as 'morbid Monday' -- due to the spate of unpleasant predictions publicized on the day.

Oppenheimer analyst Meredith Whitney filled the August 4 installment of the latter by predicting that housing prices will fall more than 30% and banks will remain reluctant to lend until the credit crisis wanes, CNBC reported Monday.

To be sure, the housing sector is a jumbled, uncertain morass, so in order to provide some clarity on the sector (and to either confirm / refute several conventional wisdom points), BloggingStocks Monday corralled economists Peter Dawson and David H. Wang.

Point 1: Those states hardest hit by the housing sector, California, Florida, Nevada, will be the first to recover.

Dawson: Not true. Wang: Most un-true.

"You may find a $300,000 or $350,000 bargain in California or Florida, but understand that five years down the road that home may be roughly the same price in real terms, after inflation," Wang said. "Job creation in an area will determine which way house prices are going in a region in the years ahead, much more than how bad the local housing market is now."

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Dispelling a few home buying / selling myths originally appeared on BloggingStocks on Mon, 04 Aug 2008 13:50:00 EST. Please see our terms for use of feeds.

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