Wealth effect to spur on consumer spending

[Truthmatters]

Housing


Housing’s so-called wealth effect has been a drag on household purchases since 2008. A projected 2 percent gain in home values next year will start to lift consumer spending in the second half of 2013, according to Michelle Meyer, senior economist at Bank of America Corp. in New York.

Meyer predicts the wealth effect will add 0.1 percentage point to spending per quarter, swinging from a 0.9 percentage point drag at the height of the housing crisis in the first quarter of 2009. The contribution represents a long-awaited turning point at a time when a struggling labor market impedes wage growth and manufacturing provides less support for the three-year expansion.

 

[CrusaderFrank]

 

[Truthmatters]

this is good news and no matter how much you pretend there is not good economic news coming out it still exsists

 

[EdwardBaiamonte]

this is good news and no matter how much you pretend there is not good economic news coming out it still exsists

sorry but you're really not intelligent enough to be here.

The economic news is very very bad. This is why the Fed is doing QE 3. This is the slowest recovery since the Great Depression despite some hope that housing many turn up in the future.

 

[Truthmatters]

your wishes that the economy stay bad in this country wont be met with many happy times for you

 

[Quantum Windbag]

Housing


Housing’s so-called wealth effect has been a drag on household purchases since 2008. A projected 2 percent gain in home values next year will start to lift consumer spending in the second half of 2013, according to Michelle Meyer, senior economist at Bank of America Corp. in New York.

Meyer predicts the wealth effect will add 0.1 percentage point to spending per quarter, swinging from a 0.9 percentage point drag at the height of the housing crisis in the first quarter of 2009. The contribution represents a long-awaited turning point at a time when a struggling labor market impedes wage growth and manufacturing provides less support for the three-year expansion.

You were against trickle down before you were for it, weren't you?

 

[EdwardBaiamonte]

Housing


Housing’s so-called wealth effect has been a drag on household purchases since 2008. A projected 2 percent gain in home values next year will start to lift consumer spending in the second half of 2013, according to Michelle Meyer, senior economist at Bank of America Corp. in New York.

Meyer predicts the wealth effect will add 0.1 percentage point to spending per quarter, swinging from a 0.9 percentage point drag at the height of the housing crisis in the first quarter of 2009. The contribution represents a long-awaited turning point at a time when a struggling labor market impedes wage growth and manufacturing provides less support for the three-year expansion.

You were against trickle down before you were for it, weren't you?

lets not forget there is Republican trickle down from rich to poor like when Steve Jobs invents products and creates and fills 1000's of real jobs

and there is Democratic trickle down when the government steals from the rich and offers welfare entitlements to an ever growing voting constituency.

Guess which approach would get a county from the stone age to here fastest? For a liberal this is a question way above his IQ.

 

[Mad Scientist]

Good idea! Let's reinflate the housing bubble!

 

[EdwardBaiamonte]

Good idea! Let's reinflate the housing bubble!

liberals are less then stupid but smart enough not to propose that so soon, but, they do want to stimulate other areas of the economy having no idea that it will cause another bubble that will burst and recess the economy further.

This is how FDR keep the Depression going for so long and became a great hero to ass backwards liberals.

 

[Wiseacre]

Housing


Housing’s so-called wealth effect has been a drag on household purchases since 2008. A projected 2 percent gain in home values next year will start to lift consumer spending in the second half of 2013, according to Michelle Meyer, senior economist at Bank of America Corp. in New York.

Meyer predicts the wealth effect will add 0.1 percentage point to spending per quarter, swinging from a 0.9 percentage point drag at the height of the housing crisis in the first quarter of 2009. The contribution represents a long-awaited turning point at a time when a struggling labor market impedes wage growth and manufacturing provides less support for the three-year expansion.

Good news is always welcome, but let's not jump the shark here. First off, the increased value of my house only means something when I sell it. True, I'm going to be a little less pessimistic if I believe I've got more equity than before, but I also gotta look at other factors. Prices are going up at the grocery store and the pump, my paycheck ain't getting any bigger and how secure am I with my job? What about health insurance, costs are going up all the time, so I don't know that happy days are here again. A lot of people have family, friends, and neighbors who are in rough shape, I might not be inclined to spend more than I already am until the uncertainty that hangs over this country is dispelled a little more.

Still, it's a start. But let's see if it is sustained.

 

[EdwardBaiamonte]

until the uncertainty that hangs over this country is dispelled a little more.

Still, it's a start. But let's see if it is sustained.

how dispelled can it get if we have a 2nd term communist president with no election in front of him to worry about?

 

[Rozman]

this is good news and no matter how much you pretend there is not good economic news coming out it still exsists

With all due respect...
There has been plenty of talk....
Obama talks and talks and talks and talks and talks..........

How about we wait a bit with all the crystal ball predictions on what is on the horizon..
Maybe the people need to see actual results for a change before we declare Obama King for life.

 

[Oddball]

Housing


Housing’s so-called wealth effect has been a drag on household purchases since 2008. A projected 2 percent gain in home values next year will start to lift consumer spending in the second half of 2013, according to Michelle Meyer, senior economist at Bank of America Corp. in New York.

Meyer predicts the wealth effect will add 0.1 percentage point to spending per quarter, swinging from a 0.9 percentage point drag at the height of the housing crisis in the first quarter of 2009. The contribution represents a long-awaited turning point at a time when a struggling labor market impedes wage growth and manufacturing provides less support for the three-year expansion.

Good news is always welcome, but let's not jump the shark here. First off, the increased value of my house only means something when I sell it. True, I'm going to be a little less pessimistic if I believe I've got more equity than before, but I also gotta look at other factors. Prices are going up at the grocery store and the pump, my paycheck ain't getting any bigger and how secure am I with my job? What about health insurance, costs are going up all the time, so I don't know that happy days are here again. A lot of people have family, friends, and neighbors who are in rough shape, I might not be inclined to spend more than I already am until the uncertainty that hangs over this country is dispelled a little more.

Still, it's a start. But let's see if it is sustained.

Right...We can solve the economic problem caused by the collapse of a real estate bubble by inflating another real estate bubble!

An idea so monumentally stupid that only truthdontmatter could think it's brilliant.

 

[Rozman]

I was just thinking that right after I put up my last post...
My thought was didn't we just have a housing bubble...
Housing was over valued....people were getting houses whether they could pay the mortgage or not.
Weren't the exec's over at Fannie and Freddie getting tremendous bonuses based on how many mortgages they wrote up.

It was nice while it lasted.....

Now we are gonna base our whole recovery on that again.