Dr. Mark Dotzour, Chief Economist for the Real Estate Center at Texas A&M recently likened the U.S. Economic Recovery to an armored vehicle, well built, equipped and manned by talented operators. But there are land mines to avoid as Dr. Dotzour explains.
Land Mine number one is the budget crisis faced by states, cities and school districts as a result of falling tax revenues.
Number two is the contraction of credit in the U.S. as business loans, mortgage loans and consumer credit continues to fall.
Third is what happens when the Fed stops buying new US mortgages at the end of March.
Finally, number four is changes Congress may make including rules for taxes, capital gains, cap and trade, and the possible windfall profits taxes and new financial institution regulations.
If these mines can be maneuvered through then we can begin to see meaningful job growth and then recovery according to Dr. Dotzour.
