The governor's budget report also cites uncertainties, including possible higher interest rates, and the impacts
of weak job growth.
Still, in an economy where low and middle class consumers are bogged down
by weak job growth and stagnating wages, better to have the rich spending than nobody at all.
Because weak job growth may indicate a slowing U.S. economy, investors poured into the relative safety of the bond market.
Although we've seen previous periods of downward trends in employment gains, including interim months of
surprisingly weak job growth, each time the trend reversed and the rate of employment growth accelerated.
«I'm very pessimistic,» he said, noting that
weak job growth in the Chicago area and concerns about the state's huge debts and unresolved budget are stifling housing sales.
Schnapp cited a familiar litany of grim statistics and trends — household net worth down 40 %, shrinking credit, high unemployment,
weak jobs growth, one in seven homes in foreclosure and 25 % underwater, sovereign debt woes in Europe and the coming fiscal cliff in the U.S. — to underscore her depression thesis.
The combination of tight lending conditions and
weak job growth is a reason for the continuing decline in the homeownership rate.
Lack of credit for home buyers and builders, reduced inventory,
weak job growth and policy uncertainty continue to be headline threats for housing.