Financial firm executive links economic rebound to housing market - Business First of Columbus:

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With housing at its most affordable in the last 35 Greiner saidinventory levels, currentl about nine and a half should subside gradually. The six-montbh mark is ideal in a sound Butin Phoenix, where foreclosures and home depreciationws continue to batter the market, a localp recovery will trail a nationalk rebound, he said. “It will probablyh be a little slower,” Greiner said minutexs after concluding his economicf forecast atthe Ritz-Carltohn in central Phoenix. Preliminaryu estimates show themedian Phoenix-arew home price at $115,000 in May, comparable to levelsw in October 1998, according to the -Repeaty Sales Index.
Greiner’s assumptions conflicf with BBVA Compass’ quarterly economic report publishecd this week that said Sunbelt including Arizona, are poised to recove r from the recession faster than other regions of the Despite market gains through the firsy three months of the year, Greiner expect s a substantial portion will be lost over the next few as the dollar loses its value and corporatr profits remain “flat on their backs.” However, he said the country has moveds out of the worst bear market since the Great and “there’s room for this market to run.” He said UMB is advising clients to move money away from the U.S.
dollatr and into younger, emerging countries in South America and Similar to the late 1970s andearly 80s, the countruy is mired in a structuraol recession, characterized by a broad and widespread malaise that causes global ramifications. In a structural recession, the economy undergoews a fundamental shift as it comes outof it. In the earlgy 80s, the economy became consumption Inthis downturn, the government has taken a much biggetr role in economic and likely will become a bigger factor in the Gross Domestif Product. At the end of 2008, government consumption expenditurex and gross investment accountecfor 20.2 percent of GDP.
“The government is becoming a bigged part of theeconomic pie,” Greiner More than 100 private bankin g clients and potential customers attended the forecast.