The economy is barely crawling along. A recent downward revision in the country’s gross domestic product shows that current economic activity is still below the recent past cyclical peak, achieved in late 2007, even though the country added more than 10 million people in the workforce age range.
Without economic growth, the large budget deficit and debt problems will...
Despite concerns about the negative long-term effects of federal stimulus efforts - including the impact they will have on the country's huge budget deficit - the U.S. government continues to take action to help spur the economy.
Amid all the news coverage about how the housing market is still in the tank, there’s one piece of news that seems to have escaped most commentators: Housing is at its most affordable level in decades.
Whatever deficit reduction might be realized by cutting the mortgage interest deduction would come at an intolerably steep price: trillions of dollars in wealth destruction and a new uncertainty in what has long been recognized as a bedrock of our economy.
With the home buyer tax credit ended and the housing market now largely on its own, how can we expect the real estate market to perform? In the near term, we’ll probably see home sales slide measurably lower. By the third quarter, it will be up to job creation and consumer confidence to bring in buyers.
One factor that should help the market is the improving...