What is Your Economic Recovery Confidence Rating?

It has been reported that home builder’s confidence level rating increased and housing starts rose to an annual rate of over 670,000 units in April.
The trend is up but far from the average annual start rate of 1,200,000 units.
Builders have reduced inventory and responded to the federal tax credit which spurred sales.
Builders in many markets have re-designed their product line to lower prices.
We can be positive about the increase in starts and a trend up in builder confidence.

As the population continues to increase and family formations are being created every day, there will be a pent-up demand. In the short term foreclosures and short sales may satisfy that demand rather than new home sales. In the lon term, it is new residential construction "with good sales" that jump starts and sustains our economy.

I certainly not an expert but in my opinion, family formations are being delayed due to the lack of jobs.
Let’s watch for statistics on the college graduating class this year – most will return home to live with their parents without a job, just my guess.

It just seems to me that we are in a vicious cycle. Unlike the past four recessions, lowering interest rates was the answer. Today, low interest rates continue to be at historic lows.

“Green jobs” will not be the answer. It is ok to move toward a green economy but it is not a panacea. And, adding federal government jobs will not be the answer. After all, many state and local governments have either reduced headcount or instituted a hiring freeze.

All I can tell you is from my own personal experience.
We have dramatically cut our spending.
We are using my 1980’s phrase: “Nice but not necessary.”

So, what is your confidence level rating on our economic recovery?