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M Dotzour on New Softness in the Economy

M Dotzour Tx RE Center Economist says new softness is continuation, last phase of recession, not new downturn #p#in

Last Update: 2011-06-04 04:44:56

RECESSION: DOUBLE-DIP OR FINAL STAGE?

NEW YORK (Real Estate Center) – What some people consider a double-dip recession, others view simply as the continuation of the recession that has gripped the nation for the past couple of years.

Take Real Estate Center Chief Economist Dr. Mark Dotzour, for example.

"We shouldn’t view this renewed softness in the economy as another downturn but just a continuation of the recession that was interrupted by a trillion dollars in federal stimulus that temporarily interrupted the cycle," Dotzour said Wednesday at the U.S. Real Estate Opportunity and Private Investing Forum in New York.

He said this is the necessary and final stage of the recession where government at federal, state and local levels is finally rightsizing by reducing spending and employment to more sustainable levels.

"Households and businesses have already done this," Dotzour said. "Once this adjustment to sustainable levels of government spending and employment is reached, then we will begin the slow process of real economic recovery."

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