Secondary Sources: Housing Poll, Consumers and Fed, Greece
A roundup of economic news from around the Web.
Housing Poll: Gallup has a poll showing Americans getting more upbeat about the housing market. “Lower but stabilizing home prices combined with continued low mortgage interest rates have persuaded 72% of Americans that now is a “excellent time” to buy a house — essentially the same percentage as a year ago, but up 19 points from 2008. Americans’ expectations about housing prices have improved markedly from last year — potentially encouraging prospective buyers to take advantage of the current home-buying opportunity, and thereby making it simple for homeowners to sell. Thirty-four percent of Americans expect the average price of houses in their area to increase over the next year — up 12 points from last year, and the highest such expectations in Gallup’s monitoring since June 2007.”
Consumers and Fed: Tim Duy says that consumers grow to be recovery and that might make the Fed’s job harder. “The retail sales report was strong, pointing to both pent-up demand and sustainability. Yet the Fed remains on hold, realizing that a long, sustained period of high progression is necessary to soak up the un- and underemployed and relieved disinflationary pressures. Moreover, financial markets remains hobbled, leaving small firms in particular starved for credit. Still, FOMC members eye the balance sheet warily; makes any respectable central merchant banker nervous. Quicker than expected progression only makes them more nervous.”
Greece: Felix Salmon points to a cool spreadsheet that allows you to look at potential scenarios facing Greece. “The stakes could barely be higher. Either Greece manages to implement its current plot, or it comes very close to spiraling out of control into devaluation and/or default. Maybe that?s why the EU isn?t insisting on high levels of conditionality in its rescue package: it knows that the Greeks themselves have every incentive to get this right. Which doesn?t, of course, mean that they?ll succeed.”
Compiled by Phil Izzo