FRISCO, Texas-America is still waiting for the housing market to recover. Get ready to wait a lot longer.
That is the view of Marci Rossell, an economist who shared her views with Catalyst Corporate FCU's Economic Forum here. Rossell said housing is one component of the economy that won't rebound to pre-recession levels. "We over-invested in real estate, and many of the resources that were in housing now are being reallocated to other sectors. This shift will take time."
Two days before Rossell's presentation, the Obama administration unveiled a new mortgage refinance program intended to help homeowners who owe more on their homes than they are worth. The new measure will help some consumers, Rossell said, but will not significantly impact consumer spending or the economy in general-and could have unintended consequences, as well. "The problem with the mortgage industry is that we (the U.S.) have privatized gains and nationalized losses," Rossell said. "The result is a society that no longer prices relative to risk."
Rossell joined economists Larry Chimerine, Steve Rick, Dr. Charles Idol, and Dr. Tun Wai, along with consultant Tim Lerew and Filene Research Institute's Mark Meyer as speakers at the two-day event. After 29 years, Dr. Idol will take a break from his long-standing role as an Economic Forum presenter.
