US housing market will not drag on growth

ON NORTH AMERICA

Recent events appear to be pointing us towards America being closer to the start than the end of their journey of fiscal self-discovery.

This means there is a risk political parties, with an eye on next year’s presidential elections may fail to extend important demand stabilisers such as the payroll tax rebate and unemployment payment extension. Focusing on the newspaper headlines and events in Washington however has the potential to give a misleading impression of events on the ground. This is because there are clear signs that the clean up from the countries largest ‘house party’ continues at a steady and encouraging pace, even if the politicians are not willing to clean up after their own party. Mortgage debt as a...