Summary
The federal budge deficit is now at an all-time record and is about 10 percent of GDP. The fallout of running excessive budget deficits will likely be higher interest rates and slower and erratic long-term economic growth. Both would provide an unfavorable backdrop for the nation's housing sector.
Analysis
the fallout of running excessive budget deficits will likely be higher interest rates and slower and erratic long-term economic growth. Both would provide an unfavorable backdrop for the nation's housing sector. Last year at this time, government policy makers were well aware of the consequences of excessive government spending and large budget deficits. Most economists today would agree that at the time, we had few options. The economy, the financial markets and the housing sector were on the verge of collapse; it was critical that the government swiftly pump money and confidence back into the economy and financial markets. Read complete article on Real Estate Economy Watch.
