Housing to Boost GDP, First Time in Years According to Fannie Mae

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Fannie Mae economists are out with their forecasts for 2012 and they expect the housing market to have a modest, positive impact in the overall GDP numbers in 2012.  This is the first time in years that housing will be a net plus to the GDP rather than the net negative drain it as been for the past few years.

Fannie Mae says, “economic indicators suggest a pickup in construction of apartment buildings and a modest uptick in single-family construction. Still, there are challenges that could emerge derailing 2012 growth projections.”

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U.S. Economy Set to Rocket in 2012?

Here is a recap of recent news about the U.S. economy.  After reading these stories and headlines, the ocean liner known as the U.S. economy appears to be ready for take off.  Do you believe it?

ADP Private Payrolls Increase by 206,000 for November 2011

Consumer Confidence Surges!

Chicago PMI beats expections and prints 62!

Pending Homes Sales Jump 10%

Black Friday Sales Hit Record – U.S. Consumers Back with a Vengeance!

And yet, economists have started to reduce their expectations on U.S. GDP growth for 2012.  In fact, the final Q311 U.S. GDP numbers were just revised down to 2.0%.

So what if everyone’s getting it wrong?  What if we are going to see 3-4% growth?  After all, the Federal Reserve and many of the central bankers around the world just provided “coordinated action” providing significant global easing with their respective monetary policies.  Markets are up 3-5% around the world right now.  It appears everything is fixed.  Is it?  Check out Mish’s take on maximum intervention by central bankers. Do you believe we have turned the corner and are getting ready for a new leg of growth in the U.S. and perhaps around the world?