What Will Drive the US Economy as Housing Fades?

[Kristijntje]

Housing is gradually fading as a prop for the U.S. economy. Forecasters are nearly unanimous on that point. And now they are counting on other sectors, particularly stepped-up business investment, to sustain the robust expansion of the past 30 months. The transition away from housing as a source of wealth and borrowing power worries many Americans, pollsters report. But neither the public nor the forecasters expect the economy to be damaged.

"I think the surprise will be that housing prices and housing sales will decelerate, but the economy will do just fine," said Richard Berner, chief domestic economist for Morgan Stanley. That optimism assumes that consumer spending, deprived of the lift from rising home prices and mortgage refinancing, will not drop very much.

full article: http://www.ecommercetimes.com/story/H2sa...ades.xhtml