Tags: Altman | US | economy | recovery

Roger Altman: US Experiencing 'Economic Rebirth'

By    |   Monday, 05 August 2013 09:43 AM

The great untold story of the summer is that the U.S. economy is revving up and the nation's economic outlook is the strongest it has been in over a decade, says Roger Altman, a former Deputy Secretary of the Treasury and executive chairman of Evercore Partners.

Americans should not let political charades in Washington direct the nation's sentiment, Altman writes in an article for Time. Deep pessimism about the economy was justifiable after the financial crisis, but that magnitude of skepticism doesn't make sense anymore, he notes.

The United States is experiencing an "economic rebirth" driven by five major cyclical forces that will direct the nation's course to more jobs, higher wages and higher asset values, he asserts.

Editor’s Note:
Obama Donor Banned This Message (Shocking)

The first factor is the housing market, Altman states, noting that prices are up 12 percent as excess supply has dwindled and the Census Bureau expects population growth of about 8 percent over the next decade.

Residential investment, he writes, could grow up to 20 percent annually, and the ripple effects will be felt through the entire economy.

In addition, consumer spending, what he calls "the sleeping giant," has been awakened. Americans have recovered the wealth lost during the crisis and paid down their debts. Now, they are in the mood to spend.

Consumer spending accounts for more than two-thirds of U.S. economic activity, and the latest report from the Commerce Department show spending rose last month despite an uptick in inflation.

Altman adds that when the crisis hit, U.S. banks were overleveraged and undermanaged. But with government assistance and increased regulation, banks have cleaned up their balance sheets and gotten back to the business of lending.

We now have the "healthiest banking system in the world," he declares.

The United States also has an oil-and-gas sector that has "staged an unexpected and stunning revival — a boom, really," Altman maintains.

American energy costs are already among the lowest in the world, and as reserves continue to rise, prices will continue to fall and the sector will generate increasing tax revenue and job opportunities.

Then, factor in America's grasp on technology — its leading universities, corporations' research and development spending and the growing number of valuable U.S. patents — and you have a recipe for a powerful economic comeback that is "uniquely American."

Others agree the nation is exceeding expectations.

The BBC reports a slowdown in the American economy was "widely expected due to the impact of federal spending cuts and the continuing weakness in the global economy." Instead, the nation's economy beat estimates and grew 1.7 percent in the second quarter.

"Businesses are now looking at the glass as half-full as opposed to half-empty," Mark Zandi, chief economist at Moody's Analytics, tells CNBC.

"The economic growth since last year has been very disappointing, largely because of the fiscal drags from tax increases and spending cuts, sequester, but it hasn't translated into weaker jobs growth," Zandi says.

"Businesses appear to be looking through the fiscal headwinds, which is very encouraging and suggests that as those headwinds fade later this year, [gross domestic product] growth and jobs growth will accelerate," he adds.

Editor’s Note: Obama Donor Banned This Message (Shocking)

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Economy
The great untold story of the summer is that the U.S. economy is revving up and the nation's economic outlook is the strongest it has been in over a decade, says Roger Altman, a former Deputy Secretary of the Treasury and executive chairman of Evercore Partners.
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2013-43-05
Monday, 05 August 2013 09:43 AM
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