NEWS   RECALLS   COMPLAINT FORM   SCAM ALERTS   RESOURCES
Small Claims Guide   Class Actions   Lemon Laws   FAQ   Newsletters  
Bookmark and Share


Complain about a product or service

Automotive   Education   Employment   Electronics   Family   Finance   Health    Homeowners   Insurance   Pets   Shopping   Travel    Print This     Email This  



NEWS   Latest |  Archives |  Auto |  Cells, etc. |  Computers |  Financial |  Health |  Homeowners |  Parents |  Privacy |  Scams |  Seniors |  Travel

Bankers See Economy Perking Up By Summer

But risk of recession remains high, economists warn





By Mark Huffman
ConsumerAffairs.com

January 21, 2008

Mortgage Crisis? Act Now to Avoid Foreclosure
Avoiding Foreclosure Takes More Than Hope
---
Home Sales Plunge In January, As Housing Woes Continue
For Homeowners, 2010 May Be Year to Stay Put
Renters of Foreclosed Properties in Connecticut Have Rights
Pending Home Sales Rise in December
Homeowners Say Banks Not Following Rules for Loan Modifications
2.8 Million Homes Threatened With Foreclosure in 2009
Long-Term Mortgage Rates Hit Record Lows
Pending Home Sales Rise In October
New Home Sales Rise As Mortgage Rates Fall
Nearly One In Four Homeowners Under Water
Existing Home Sales Jump 10 Percent
Mortgage Delinquencies Still Climbing
Realtors See Signs Of Housing Turnaround
Zillow.com: Fewer 'Underwater' Homeowners In Third Quarter
Distressed Homeowners May Be Able To Rent Their Homes
Should You Walk Away From Your Underwater Mortgage?
Home Prices Rise Four Months In A Row
Consumer Credit Plunges In August
Study: Action By Feds Made Housing Crisis Worse
Mortgage Lender's Collapse Leaves Borrowers Adrift
Bank of America, Wells Fargo Hit With Class Action
Bank Sees Dim Future For Homeowners
Ohio Sues Mortgage Servicer Over Lack Of Modifications
---
More ...

With a huge sell-off in the stock market last week, Wall Street pundits are wringing their hands even more than usual, worrying that problems facing the banking industry are quickly pushing the country into a recession. But the bankers themselves appear a little more optimistic.

The American Bankers Association Economic Advisory Committee says the economy may well face turbulence in the next few months, but should bounce back by summer.

"The drag from residential investment will continue to weigh the economy down, but we expect this to moderate after mid-year," said Peter Hooper, chair of the panel and chief economist, Deutsche Bank Securities, New York. "Fed rate cuts and a possible fiscal stimulus package should support stronger economic growth in the second half of 2008."

The consensus EAC opinion is that real economic growth will slow to roughly 1.25 percent in the first six months of the year, picking up to about 2.25 percent in the second half. The unemployment rate is expected to rise moderately to 5.3 percent through yearend and consumer prices are expected to rise 2.5 percent this year, down from 4 percent in 2007.

But the bankers do concede that the outlook for the economy has become more clouded in recent weeks. The group says the risk of substantially weaker economic performance is significant and the EAC now places the probability of recession close to 50 percent.

"Falling home prices, elevated energy prices, and strains in financial markets will continue to pose significant challenges to the economy," Hooper said.

Given the increasing risk of recession, the EAC said it expects the Federal Reserve to cut its short-term interest rates by 50 basis points at the January meeting and by another 25 basis points in both March and April. These cuts would lower the federal funds target rate from 4.25 percent at present to 3.25 percent by mid-year.

"Rate cuts are justified because of the continuing turmoil in the financial markets and a weakening economy," said Hooper. "Inflation risks increasingly are in the background for now," he added.

The panel noted that continued problems in the housing sector, along with funding challenges, are causing many banks to be much more cautious when it comes to lending. Many banks are holding onto their cash, not knowing how many bad mortgages are in their loan portfolios.

"Even as securitization has dried up, bank credit is still flowing," said Hooper. "Borrowers are rediscovering that the banking industry is well-positioned to meet their funding needs. Underwriting standards will naturally reflect the weakening economy, but creditworthy borrowers will continue to have access to credit," he said.

The EAC meets in Washington twice a year to provide perspectives on the national and local economies to top policymakers. The group also met with the Board of Governors of the Federal Reserve System.



Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

FREE CONSUMER NEWSLETTERS

The Daily Consumer
Afternoons M-F

Sign up now!


Consumer News & Alerts
Every Sunday

Sign up now!

Follow us on Twitter.





CONSUMER NEWS

SAFETY RECALLS

Back to the top |

Advertisement


Custom Search
AUTOMOTIVE
• Dealers
• Manufacturers
• Service
• Extended Warranties
• Lemon Laws
• Recalls
• Tires
• Transporters

FAMILY
• Aging
• Children, Parenting
• Recalls
• Dating
• Education
• Entertainment
• Pets
• Weddings
FINANCE
• Annuities
• Banks
• Credit Cards
• Debt Collection
• Debt Counseling
• Insurance
• Investing
• Loans
• Mortgages
• Payday Loans
• Student Loans
• Tax Prep

HEALTH
• Doctors
• Drugs, Pharmacies
• Health Clubs
• Hearing Care
• Hospitals
• Nursing Homes
• Nutrition, Diets
• Vision Care
• Weight Loss
HOUSE & HOME
• Appliances
• Cookware
• Furniture
• Home Improvements
• Lawn & Garden
• Movers
• Pools & Spas
• Realtors, Rental Agents
• Recalls
• Utilities

ELECTRONICS
• Cable TV/DBS
• Cameras
• Cell Phones
• Computers
• Home Electronics
• Internet Access
• Local Phone Service
• Long Distance
• VoIP
SHOPPING
• Delivery Services
• In-Home
• Online
• Retail Stores
• Sporting Goods
• Supermarkets
• Telemarketers

TRAVEL
• Airlines
• Bus Lines
• Car Rental
• Cruises
• Hotels
• Travel Agents
• Trains

RESOURCES
• Class Actions
• Complaint Form
• Small Claims Guide
• Lemon Laws
CONSUMER NEWS
• Latest News
• Automotive
• Telecom
• Financial
• Health
• Homeowners
• Scams
• Seniors
• Travel
• More ...

RECALLS
• Automotive
• Children's Products
• Drugs
• Food
• Household Products
• Sporting Goods

ABOUT US
• FAQ
• Privacy Policy
• Advertise With Us
• Newsroom
• Syndication
• Terms of Use

Terms of Use Your use of this site constitutes acceptance of the Terms of Use

Advertisements on this site are placed and controlled by outside advertising networks. ConsumerAffairs.com does not evaluate or endorse the products and services advertised. See the FAQ for more information.

Company Response Welcome If complaints about your company appear on our site, we welcome your response. Please see the Response Form for more information.

For more information, see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice.  ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof. 

Copyright © 2010 ConsumerAffairs.com Inc.  All Rights Reserved.    The contents of this site may not be republished, reprinted, rewritten or recirculated without written permission.