A Take on Economists Bullish Attitudes

One blog I follow regularly is Alberta Bubble and I really like this person's viewpoint on the real estate market in Alberta. In a recent post he discusses the economists of today and how their bullish predictions are not meshing with actual economic numbers.

Why is it that every contraction in GDP called 'unexpected'? Or every decline in jobs seen through the eyes of economist who never saw it coming?Why do all these economics have to constantly bullish projections?

Is the recession over? Is the economy on the way up? It won't recover quickly but it has leveled out in some parts of Canada. The real estate market in the lower mainland of BC has rebounded a bit, whether that's the trend in the future I can't say very easily. Is it a sign of economic recovery? NO, more like an influx of buyers who have been waiting on the side lines for all of 2008 for prices and interest rates to drop. Once they've finished jumping into the market and interest rates start rising they may be surprised to find prices slip a bit more.

It is GDP that determines if a market is going into or out of a recession not the real estate market.

Anyway check out Alberta Bubble for an interesting look at economist predictions and what's really going on in the economy.