Run Down of the Economy and Real Estate

Business Economics (NABE) of 242 economists finds 60% feel monetary policy is “appropriate” given current economic conditions; 45% say monetary policy risks are were skewed toward deflation and 89% think the Dodd-Frank Act will have only a modest effect in avoiding another crisis. The newest survey of the top 242 Economists finds 60% feel monetary policy is “appropriate” given current economic conditions. 45% of the Economists believe that policy risks are skewed toward deflation and 89% think the Dodd-Frank Act will have only a modest effect in avoiding another crisis. I guess it is to bad the economists were not consulted before the Act was executed. Dodd & Frank probably felt it necessary to include reform on the areas they believed caused the crisis. In more economic news the second quarter GDP rate represents a considerable deceleration from the 5% rate seen during Q409, when optimism was growing and job losses fading. That boost lasted though the winter, but turned into a 3.7% rate in the 1st quarter, and now has again settled back again. The decline in the economy has been tracked by the Chicago Federal Reserve’s National Activity Index, which sported a -0.7 figure in June, the end of the second quarter. However, the most recent report, covering July, found an improvement to a flat 0.0 figure, indicating that the economy likely returned closer to its natural annual growth rate of perhaps 2.7% or so. Of course, July’s meager improvement was just the first month of the third quarter, …Continue Reading