ECONOMIC OUTLOOK Over twenty years of proven expertise and trend analysis in evaluating residential property values. |
 |
To help our customers better understand current market conditions and projections, Local Market Monitor provides periodic analyses of national economic trends and their impact on real estate markets. This analysis, developed by Ingo Winzer, reflects his view on the current outlook for the national economy. National Economic OutlookOctober 15, 2008 Efforts to prop up the financial sector or the big car companies will make no difference to the economy as a whole. Banks, investment banks, insurance companies, the short-term money markets, are sources of cash for companies that make things and for consumers that buy things. Right now, consumers are not buying things, nor should they, because they no longer can afford to. So it doesn't matter if the companies that make goods have enough cash, and it doesn't matter if the financial companies that supply cash are willing and able to. There is no credit crisis, there is a consumer spending crisis. And there is no solution except an extended period of lower consumer spending, no matter how hysterical our national financiers and regulators get. So, be careful in the next couple of years. ARCHIVED OUTLOOKS
|
|