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To: Fiscally Conservative who wrote (34529)7/4/2012 3:25:52 PM
From: KyrosL  Respond to of 220939
 
Like I said there are two big flies in the "new recession" ointment: a possible revival of housing, and a robust continuation of domestic oil/gas production increases, which stimulate consumer demand by keeping gas prices low.

Housing has been the big missing factor in this recovery. In fact, it has been a negative so far. My hunch is it will be a mild positive in the not too distant future. In all previous recoveries housing was the key factor that pulled the economy out of the recession.

Domestic oil/gas production increases directly substitute energy imports, so they fall straight to GDP. They also help with consumer demand by keeping gasoline prices under control.

The thing that can upset this is a European implosion that will really kill our exports and push other countries, like China, into recession. This is certainly quite possible.



To: Fiscally Conservative who wrote (34529)7/4/2012 5:41:44 PM
From: KyrosL  Read Replies (1) | Respond to of 220939
 
Interesting. Calculated Risk just posted on this very subject.

calculatedriskblog.com