Economy News

Economy News

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DID YOU KNOW? 

The now record-setting run of U.S. economic growth enters its 121st month, sustained by a decade of low interest rates and massive Federal Reserve intervention that helped put 22 million people back to work. Some say the real recovery is only beginning now after the horrible 2007-2009 recession wiped $600 billion dollars from U.S. GDP on an inflation-adjusted basis, creating a gap of close to $1 trillion between U.S. output and the economy’s potential based on its population, industrial base, and other factors. Income and wealth inequality, and the effects of automation on the workforce, have become an increasing concern, but so has the risk that keeping interest rates too low might feed the sort of excessive debt that caused the last financial crisis. (Reuters)

DID YOU KNOW? 

Total U.S. consumer debt hit $14 trillion in the first quarter of 2019, surpassing the $13 trillion of leverage accumulated in credit cards, auto loans,mortgages and other debt back in 2008, at the beginning of the Great Recession. The US economy has also grown by 19% since 2008 and the US population has grown by almost 8% since 2008. Student loan debt has more than DOUBLED since then, one big negative for first-time homebuyers. (Marketwatch)


KEY TAKEAWAY 

The last recession was unusual in that it affected the ENTIRE US housing market. Today, with much more banking and lending regulation the chances of that repeating are lessened considerably. Housing 'recessions' are much more localized based on local economies and supply/demand.

Michael Maughan