More on the Economy–Not Good for South Florida and Coral Gables
September 2, 2010 Leave a comment
The outgoing head of the Council of Economic Advisors, Christina Romer, has regrets. South Florida cannot count on housing and housing values to defend family and city balance sheets. Conclusion: Coral Gables do not postpone the pain–it may just get worse.
The thing I do regret is that there is still so much unfinished business. I would give anything if unemployment really were down to 8 percent or lower. The American people are suffering terribly. Policymakers need to find the will to take the steps needed to finish the job and return the American economy to full health, and no one should be blocking essential actions for partisan reasons.
That the economy remains as troubled as it is despite aggressive action reflects the fact that this has not been a normal recession. Just as the downturn was uncharted territory, so is its recovery. Because the recession began with interest rates at low levels, we can’t just have interest rates fall and housing, investment, and other interest-sensitive sectors come roaring back as they typically do in recoveries. Rather, because of overbuilding in housing and commercial real estate during the bubble, construction is likely to remain subdued for some time.