Briefing.com President on recession and credit crunch

Wednesday November 21, 2007

Dick Green, President of Briefing.com gives his reasons why the U.S. is not moving towards recession. I pulled the following quotes but read the entire letter.

“Of course, there is always the risk that conditions will change. Still, it has been two years since housing started lower and employment is still rising. It has been many months since banks knew of their asset problems and they are still making loans. It is our belief that neither a recession or classic credit crunch will develop. Fears are driving the market. Of course, fears count too, just as much as greed when the market is on a run. And we aren’t arguing for fighting the market. Fears could keep the market in check for quite a while, and will certainly lead to a high level of volatility.

However, investors should understand the facts. Once it becomes clear that there is no recession developing, and that the write-down of assets at financial institutions is not a reason to take all corporate values lower, the market will recover - somewhat.”

Briefing.com: Page One

Thanks to Jeff at A Dash of Insight for the link.