Wall street in a muddle over the economy!

The Wall street seems to be heading to a muddle over the anticipation of how the U.S economy fares next week. The investor reports as well as the housing data are to be released soon and it could go either way. Goldman sachs had reported profits in the last quarter and they are expected to do the same as their Q4 reports are due soon.

But as far as the markets go, and with all indications that the inflation is due to go up and in only one direction, the mood is all about 'a half glass that is all too empty'. The Fed cannot do much as with any inflation rise, their hands get tied down , so any negative data especially in the Housing data is bound to send the markets into another free fall.

Citigroup chief economist Lewis Alexander said he believes the housing market will remain weak well into 2008, but that it is more likely that the economy will keep growing than head into recession. I have to agree with that outlook but I also have to say that saying that the economy will keep on growing in spite of the housing market seems to be hiding ones head all too deeply in the sand. Maybe it is high time that the price ranges were regulated in the housing market but any such controls will only have negative implications for the U.S economy and the U.S dollar.
There is no easy solution to the current mess and this is one ride that we all will have to ride whether we like it or not!

dow jones,economy,fed,housing,george bush,goldman sachs