Tags: Stumpf | economy | stronger | contraction

Wells Fargo's Stumpf: Economy 'Stronger Than People Think'

By    |   Thursday, 17 July 2014 10:08 AM

Don't be fooled by the 2.9 percent contraction in first-quarter GDP, says John Stumpf, CEO of Wells Fargo.

The U.S. economy is "stronger than people think," he tells CNBC. Most analysts believe the economy will grow at an annualized rate of more than 3 percent for the rest of the year.

"We were all surprised by first-quarter GDP," Stumpf states. "Who knows what second quarter will be, but I think it will surprise on the upside.

Editor’s Note:
New Warning - Stocks on Verge of Major Collapse

"If you take the boom years, the so-called boom years from 2000 to 2008, and separate and take out of that the excess of what happened in housing, the rest of the economy today is better than it was then."

And even on the housing front, he says he's "quite bullish." Existing home sales rose 4.9 percent in May from April.

As for other sectors, "energy is booming, way better than it was then," Stumpf notes. "Autos, they might sell 17 million new vehicles this year."

Auto sales climbed 1.2 percent in June from a year earlier, to an annualized rate of 16.98 million, the highest since July 2006.

In addition, he asserts, manufacturing and agriculture are picking up.

CNBC contributor Ron Insana isn't quite so enthusiastic. He offers a five-point plan in an open letter to Washington published on CNBC.

1. "Upgrade infrastructure.
Pass and sign legislation to bring the nation's critical infrastructure in the 21st century thereby creating new capital assets of the government, as opposed to deficit-financed make-work programs," Insana writes.

2. Immigration reform. Congress must pass a plan that "enhances border security, allows for a path to citizenship for the nation's 12 million undocumented immigrants and relaxes advanced visas for highly skilled workers," he argues.

3. Relax the restrictions on exports of crude oil, liquefied natural gas and other energy products.

4. Implement a job-training program. The government should cooperate with business and universities to offer training and education for the long-term unemployed, Insana suggests.

5. Entitlement reforms. The retirement and eligibility ages should be increased for Social Security and Medicare, he explains. And both programs should include means-testing.

Editor’s Note: New Warning - Stocks on Verge of Major Collapse

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
Economy
Don't be fooled by the 2.9 percent contraction in first-quarter GDP, says John Stumpf, CEO of Wells Fargo.
Stumpf, economy, stronger, contraction
372
2014-08-17
Thursday, 17 July 2014 10:08 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved