Housing to push economy to edge of recession, "growth in other areas should aid a recovery"

Housing to push economy to edge of recession
But UCLA forecast also notes growth in other areas should aid a recovery

http://www.msnbc.msn.com/id/20730894/

LOS ANGELES - Ongoing weakness in the housing market will push the national economy to the brink of recession, but growth in other areas should put the country back on a slow road to recovery by 2009, according to an economic forecast released Wednesday.

The quarterly Anderson Forecast by the University of California at Los Angeles predicts growth in the gross domestic product of just over 1 percent for the fourth quarter of 2007 and first quarter of 2008.

Economic growth will remain “tepid” for the remainder of 2008 and return to 3 percent in 2009, said David Shulman, senior economist for the forecast.

Shulman also expects housing prices to plunge 10 percent to 15 percent before they start to recover, sometime in 2009. “The small recent minimal declines represent not the end, but rather the beginning of what will be a very painful decline,” he wrote.

bust of the internet stock bubble of 1999-2000. Painful but probably recover faster because housing is always needed.

Unless the other areas are Pakistan, India, Mexico and China, I think they're a little off.

we've been in a recession since Bush got sworn in.

Housing prices are going to plunge more than 10 - 15%.

When is the media going to stop propping this admin. up?

I read that forecast the other day about the subprime mortgage fiasco. It's pretty shocking.

Here it is:

"Still, strong global demand for U.S.-produced goods and reduced domestic demand for imports should fuel economic growth of about 1.8 percent for 2008, according to the report. Corporate investment in software and equipment was also predicted to fuel modest growth."

One tepid paragraph way down at the bottom of the article, calls for putting it in the headline?

Global demand for US produced goods? Where, where? There is no such thing, otherwise we would not have such a huge trade deficit.

Reduced domestic demand for imports? Isn't that the result of the recession? US consumers are buying less cause their houses stopped spitting out equity like a broken ATM.

Corporate investment in software and equipment? Oh this guy has to be joking. Corporations have not been reinvesting profits. They have been feeding their profits to their CEOs and other money hungry managers. When was the last time an oil refinery was built in the US? When was the last time a new factory opened in the US? This reporter has to be an acid.