Monday, December 05, 2005

That's Hot

Paris Hilton describes a trendy item or a passing fad by claiming “that’s hot.” Perhaps that’s how she’d depict some real estate markets in the U.S. Lately there have been some contradicting views about the current state of our economy. Some maintain that the economy remains strong and real estate price levels do not merit concern. On the other hand, some argue that certain pressures will eventually crack the adamant economy.

Well, exactly how hot is the U.S economy? GDP figures suggest that our economy has been continuing to grow at a healthy pace despite some of the negative exogenous factors (i.e. Hurricane Katrina, etc.). However a rapidly growing economy usually comes with inflationary pressures, and in turn with rising interest rates.

(My full 7 page report can be obtained at R.W. Wentworth)