Posted on 06/04/2013 8:39:33 AM PDT by whitedog57
According to Mark Zandi, Chief Economist for Moody’s, the economy will accelerate to 3% or more after Bernanke steps down as Federal Reserve Board Chairman. Not because Bernanke is stepping down. Rather, Zandi thinks that the economy has achieved “escape velocity.”
Federal Reserve Chairman Ben S. Bernanke will leave behind an economy poised to record its biggest advance in almost a decade when he makes his anticipated departure from the central bank early next year.
Growth will accelerate to 3 percent or more in 2014 after averaging an annualized 2.1 percent during the first four years of the recovery, according to projections by forecasting firms Moody’s Analytics Inc. and Macroeconomic Advisers in St. Louis. That would be the fastest rate of expansion since at least 2005, the year before Bernanke became central bank chief.
He has “navigated the economy and the financial system through one of the darkest periods,” said Mark Zandi, chief economist for Moody’s in West Chester, Pennsylvania. “Now we’re starting to see some sunshine breaking through.”
Odd, this is exactly what The Fed is forecasting as well.
Here is my concern. We have not seen sustainable YoY real GDP growth of 3%+ since 1996-2000. With additional regulations, Obamacare taxation and a sickened Europe, I have my doubts. Unless, of course, the US is moving to a China model of planned central economic growth with a massive expansion of credit.
Global sovereign yields are rising around the globe. See 1 month change table on right in the yellow box.
And the US Treasury yield curve has risen nearly 50 basis points on the 10 year since May 2nd.
Net interest margins for insured financial institutions have been falling since early 2010.
On the housing front, the CoreLogic report is out this morning. Home prices nationwide, including distressed sales, increased 12.1 percent on a year-over-year basis in April 2013 compared to April 2012. This change represents the biggest year-over-year increase since February 2006 and the 14th consecutive monthly increase in home prices nationally. On a month-over-month basis, including distressed sales, home prices increased by 3.2 percent in April 2013 compared to March 2013.
The CoreLogic report is similar in findings competing indices, FNC, Case-Shiller and Loan Processing Services.
Despite the spiking of home prices, lumber futures continue to decline.
Mortgage applications are due tomorrow from the Mortgage Bankers Association (MBA). Let’s see if we finally get some action!
Is this before or after the total crash.
What drug is this guy on? I need to get some of it. :-)
Bump.
There’s article after article telling of the mess that will happen because the Fed has no exit strategy for QE.
After four years of an Obama recovery, they claim growth is finally inevitable. The labor market is shrinking. The cost of hiring workers is rising due to ObamaCare. Regulations and uncertainty cause skittishness. Higher taxes on the profits of any successful expansion are extremely likely. What could go wrong?
Might be true. Beginning in July the GDP will include items such as paintings and poems that have intrinsic value.
It is another almost unlimited means of tweaking the statistics by a few percentage points.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.