Are There Early Signs Of An Economic Recovery?
Why oh why does the media do this? Over and over again, they opt for fearmongering headlines that drive people deeper and deeper into a state of fear. (If you’ve read The Shock Doctrine, maybe it offers a possible explanation but I digress). They have an equal opportunity to highlight good and positive news. Some of it is even important!
In yesterdays Globe and Mail, there was an article with the following headline:
“U.S. crisis batters Canadian manufacturing”
In the first paragraph, it talks about an “economic pounding” and how things may get worse. They use words like “worrisome” and “nasty.” By the third paragraph, they are admitting that nobody knows “…how protracted it is going to be.”
Now let’s jump to the end. Would you for a moment believe this is part of the same article?
“Mr. Pinsonneault nevertheless believes that a recovery should emerge in the second half of the year, around the same time National Bank Financial expects the long U.S. recession to end.
Late last week, National Bank noted that the U.S. housing market – the rotten heart of the global economic malaise – appears to be nearing a nadir. Median household income is coming in line with the median price of an existing home, a key factor for recovery, and the inventory of unsold homes and condos is falling, another good sign.
In recessions, home sales usually hit bottom well before unemployment stops rising. So while more job losses will occur, National Bank said home sales could bounce back by as much as 10 per cent.”
Since just about every potential home buyer or seller that I know is wondering when the market has or will hit bottom, the National Bank comments ARE the news. Why didn’t the headline read, “Home Sales Expected To Bounce Back This Year” or, “Economic Indicators Show First Signs of Recovery?
Bottom Line? Early, early signs are emerging…