Nov 11, 2007

Gene Epstein on the Goldilocks economy (2007)

WILL THE DOWNTURN IN HOUSING bring the u.s. economy down with it, causing either a growth recession (growth, but with rising unemployment), or an outright contraction? Or is the housing downturn providing -- in the Federal Reserve's view, at least -- a welcome brake on an economy that was beginning to exceed its inflationary speed limits? So far, at least, the answer is the latter. Based on the economic data released last week, the Goldilocks economy should suffer no extended visit from those three bears this year.

~ Gene Epstein, economics editor, Barron's, "No Sign of the Three Bears," June 4, 2007

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