TODAY

1
TODAYS ECONOMIC ENVIRONMENT
So Far, There Are Few Surprises The Economic
News Seems Bleaker, But The Reality is About As
Expected
2
REAL GDP GROWTHAnnualized Quarterly Growth Rates
GDP Growth Rate
Date
Source St. Louis Fed
3
NATIONAL EMPLOYMENTAnnual Year Over Year Growth
Rate
Annual Percent Growth
Date
Source BLS
4
BUSINESS INVESTMENTNon-Residential Annualized
Quarterly Gains
Annualized Percent Change
Date
Source St. Louis Fed
5
THE HOUSING MARKET CORRECTION
It Is Also Taking The Expected Course
6
NATIONAL NEW HOME MARKETAverage Annual Growth
Rate Sales and Starts
Percent Increase
Date
Source Census Bureau
7
HOME PRICE APPRECIATIONAnnual Year Over Year
Percent Appreciation
Annual Percent Gain
Year
Source NAR
8
U.S. MORTGAGE FORECLOSURES
(Percent of Outstanding Mortgages)
Percent Foreclosures
Year
Source BMA
9
FORCES ACTING ON THE NATIONAL ECONOMY

• A. Consumers Health
• Debt Burdens
• Interest Rates
• Energy Prices
• Deteriorating Home Equities
• B. Business Investment
• Interest Rates
• Energy Prices
• C. International Trade
• Value of the Dollar
• Weakening International Economies

10
WHILE THE ECONOMYIS HOLDING UP FAIRLY WELL,IT
IS LIKELY TO GET WORSE BEFORE IT GETS BETTER