Patrick J. O'Keefe Appears as Guest Host on CNBC Worldwide Exchange
Patrick J. O'Keefe, J.H. Cohn's director of economic research, was CNBC Worldwide Exchange's guest host for an hour on July 25.
He commented on several of the day's news items:
Regarding the housing recovery, he said, "Housing has certainly begun to improve here in the United States. When we look at the data over the past couple of months, there have been some fluctuations but generally prices are improving…the volume of transactions, while it does a little bit of stutter step, is on an upward trend so generally what we see is improvement. But we have to remember that we are coming off of historic lows and the progress going forward is going to benefit from low interest rates. We have a long way to go before housing will be making a significant contribution to the overall economy."
When asked about the GDP data that will be released on Friday, Pat said, "It looks like the snail is going to slow down…The very low rate of growth that that we saw in the first quarter is going to slow more to a crawl. I don't think a stall is in the works right now. There is enough forward momentum in the economy to keep us inching forward, but certainly the external challenges, the fiscal challenges, could jeopardize this rather tepid expansion."
Regarding the Q2 earnings report card, Pat commented, "The macro conditions are indicating that future earnings are going to be constrained."
On the topic of the Libor investigation, Pat contributed, "The biggest consequence of the Libor scandal is that it's yet another indication to the general public that there's something wrong with the financial markets."
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