Economic Good News

Posted by maloneybonds on June 18, 2010 under Economy, Trends |

Good News… The economy is improving. Growth in GDP is forecasted at 3.5% this year. Although modest, the housing recovery is real & sustainable. It now takes 18% of household income to pay a mortgage as opposed to long term average of 26%. As valuations stabilize, banks will be more inclined to lend. Pricing on public works construction has deteriorated to REALLY STUPID / SUICIDAL levels!!! With this & budget shortfalls of public bodies, “Exec’s” at Bonding Companies predict contractor defaults to hit the fan in 4th 1/4 2010 & continue into 1st 1/2 2011. Those that survive will enjoy another nice run.

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