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Provided to you Exclusively by Brad Dinkel |
If you hear about the Recession Talks right now- Here is the scoop
There is often a lot of misconception of the word recession or what it really is. Goldman-Sachs went to the historic definition of recession- 2 successive quarters with negative growth. That's it. Goldman is also making a prediction saying they expect the economy will be -1.0% growth in Q1 and Q2 of 2008. They base their new bearish outlook on the increase in the Dec unemployment rate to 5.0% from 4.7% in Nov, and as we have hammered, consumers will pull back growth and spending. Why this recession may be different if in fact we do show negative growth? Personal savings and earnings are up not down. This may keep the spending volumes up.
Again, we expect 2008 to be a ray of sunshine for A paper lending with rates hovering in the 5% range. Last week, Mortgage Applications were up nationally 32.2% with 14.7% of that figure in purchase applications. The average national 30yr Rate was 5.73%. Good signs for the start of the year.
