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Archive for the ‘Ekon’ Category

The American Family

I don’t like him, but he does make a good point.

"If the US Government was a family, they would be making $58,000 a year, they spend $75,000 a year, & are $327,000 in credit card debt. They are currently proposing BIG spending cuts to reduce their spending to $72,000 a year. These are the actual proportions of the federal budget & debt, reduced to a level that we can understand." – Dave Ramsey

http://www.torontosun.com/2011/08/08/financial-fix-rein-in-debt

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Credit Crunch

Freddie Mac is somewhat optimistic on the housing market and expects sales in 2011 to outpace 2010 sales by 3-5%. Freddie Mac’s economists state in “Freddie Mac’s US Economic and Housing market Outlook” that a “double-dip” will not likely occur in the housing market and that current economic sluggishness(unemployment) is a temporary tough spot that will not have long terms effects on the overall recent positive gains in the economy. See the article

It makes me feel much better that smart people are telling me this, it must be true.

2004 paper by Glenn Hubbard and William Dudley(Dean of the Columbia University Graduate School of Business and CEO of the Fed in NY):

With the development of a secondary mortgage market and the elimination of interest rate ceilings on bank deposits, “credit crunches” of the sort that periodically shut off the supply of funds to home buyers, and crushed the homebuilding industry between 1966 and 1982, are a thing of the past. Today, the supply of credit to qualified home buyers is virtually assured.-2004

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