Regis Philbin
Oct 26th, 2006, 07:04 PM
http://money.cnn.com/2006/10/26/news/economy/economy_outlook/index.htm?cnn=yes
The bubble-proof economy
Real estate and home building are struggling but most other sectors seem set to ride out the storm.
By Chris Isidore, CNNMoney.com senior writer
October 26 2006: 4:10 PM EDT
NEW YORK (CNNMoney.com) -- The economy appears thriving away from home, or more precisely, away from homes.
There's little question that the housing market is now in a recession if not a full-fledged depression. Which is not so surprising after the national housing boom that started in the late 1990s - the good times had to end at some point.
The housing market slowdown has taken a bite out of economic growth, but hasn't been as big a problem as some had feared.
But there are plenty of signs of economic strength away from the housing sector. And that has some economists surprised, indeed.
This week brought news that prices for existing homes posted the biggest year-over-year decline on record in September while new home prices sank almost 10 percent, the biggest drop in nearly 36 years.
Leading home builders such as Pulte Home and Centex both reported sharply lower earnings and cut their forecasts this week. The other major builders - D.R. Horton, Toll Brothers, Lennar and K.B. Home - are also seeing sales and profits tumble.
But as the government gets set to release its first reading on the economy's performance in the third quarter, it's getting tougher to see housing knocking the economy off track.
Economists surveyed by Briefing.com forecast that growth in gross domestic product slowed to a 2.1 percent annual rate in the quarter, from the 2.6 percent pace in the second quarter. The report on GDP, the broadest measure of the economy, is due before the market opens Friday morning.
And that has some economists surprised, indeed.
What else is new??? They're ALWAYS surprised!!!
Are these people ever right??? How do they stay employed???
Economists have the luxury of being in the only profession where you can be wrong ALL the time and stay employed. Not only stay employed, but still keep your "expert" status as well.
LOL :laugh: :roll: :funny:
The bubble-proof economy
Real estate and home building are struggling but most other sectors seem set to ride out the storm.
By Chris Isidore, CNNMoney.com senior writer
October 26 2006: 4:10 PM EDT
NEW YORK (CNNMoney.com) -- The economy appears thriving away from home, or more precisely, away from homes.
There's little question that the housing market is now in a recession if not a full-fledged depression. Which is not so surprising after the national housing boom that started in the late 1990s - the good times had to end at some point.
The housing market slowdown has taken a bite out of economic growth, but hasn't been as big a problem as some had feared.
But there are plenty of signs of economic strength away from the housing sector. And that has some economists surprised, indeed.
This week brought news that prices for existing homes posted the biggest year-over-year decline on record in September while new home prices sank almost 10 percent, the biggest drop in nearly 36 years.
Leading home builders such as Pulte Home and Centex both reported sharply lower earnings and cut their forecasts this week. The other major builders - D.R. Horton, Toll Brothers, Lennar and K.B. Home - are also seeing sales and profits tumble.
But as the government gets set to release its first reading on the economy's performance in the third quarter, it's getting tougher to see housing knocking the economy off track.
Economists surveyed by Briefing.com forecast that growth in gross domestic product slowed to a 2.1 percent annual rate in the quarter, from the 2.6 percent pace in the second quarter. The report on GDP, the broadest measure of the economy, is due before the market opens Friday morning.
And that has some economists surprised, indeed.
What else is new??? They're ALWAYS surprised!!!
Are these people ever right??? How do they stay employed???
Economists have the luxury of being in the only profession where you can be wrong ALL the time and stay employed. Not only stay employed, but still keep your "expert" status as well.
LOL :laugh: :roll: :funny: