Gloom . . . that's why they call it the dismal science

The other day Sherry Cooper, Chief Economist at BMO, wrote about the ugly economic downside of a flu Pandemic. It was picked up by the Toronto Star (Flu pandemic could trigger a Depression, BMO warns). Today, the Globe and Mail is carrying a story of a similar sort, just a different spectre (A U.S. housing slowdown could wreak havoc: TD). The tone of this last one is:

Toronto-Dominion Bank warned yesterday that all it will take is for the climb in U.S. house prices to slow to more normal levels after their sharp, four-year upward race, as will inevitably happen. This is because new, real estate-based consumer wealth has been a key driver of U.S. expansion, which means any slowdown in the sector -- let alone a formal correction in house prices -- will likely have a dramatic effect, TD economist Beata Caranci said in a report.

Sounds a little macro-bearish to me. Where are all the reports about consumer, executive, banker, . . . confidence?

Posted by Grayson at August 19, 2005 07:30 AM