Focus Shifts from Growth to Inflation
Economy Now Enjoys Self-Sustaining Momentum
Coming into 2011, economists remained largely fixated on the inadequacy of demand for labor, housing, commercial real estate and other aspects of economic life. Economists have been busily pouring over reams of data regarding senior bank loan officer attitudes, consumer credit availability and other indicia of credit market thawing. The conventional wisdom has been that until banks begin lending more aggressively... [More]
Equity Markets and Economy Have Turned for the Better
Why Economic Activity may not Accelerate as Dramatically as Expected this Year
A combination of ongoing stimulus and recent economic momentum has induced many economists to ratchet up their 2011 forecasts and there are plenty of reasons to be optimistic. Consumer spending has been rising, with retail and food services sales up 7.7 percent between November 2009 and November 2010. Auto sales have also been edging higher, including a... [More]
Economy Expanding as Predicted, but Will the Run Last?
The nation has strung together two consecutive quarters of growth with 2009:Q4 annualized growth registering 5.6 percent (third estimate). Employment is now expanding and the unemployment rate has been declining in recent months. A close inspection of fourth quarter GDP reveals a promising shift away from pure dependence upon government spending to a broadening economic expansion. Of central importance is the ongoing reboun... [More]