Mortgage Logic

US Manufacturers Will Come out of Recession Meaner & Leaner

Unemployment not a concern of progressive means of production in US.

At a recent CAAMP (Canadian Association of Accredited Mortgage Professionals) conference in Montreal, Benjamin Tal, CIBC economist said (paraphrased) that the most significant event that will come out of the current extended period of low interest rates will be the massive re-investment by manufacturers/exporters into their means of production to streamline and make more efficient their respective operations.

What does this mean?  The US will come out of the current recession by becoming even more productive than they already are, and they will become more export driven.  Unemployment in the US will not be as important a measure of the health of the economy for the near to medium term.  People in the US will come to terms with re-training and changing careers.

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