Not too hot and not too cold

While I was right to say US GDP would bounce back in the second quarter - it was about 4% as I predi...

While I was right to say US GDP would bounce back in the second quarter - it was about 4% as I predicted - in the third quarter, the US economy appeared to take a turn for the worse. The continuing problems in the US housing market have put pressure on the US consumer, the most important component of US GDP. Falling property values and rising mortgage costs have worked to reduce consumer spending. Other parts of the US economy have been compensating, most noticeably corporate investment and exports. However, it is US consumers that are key, and the credit crunch will undoubtedly affect th...