Based on the current economic turns take a strong look at the overall information.

Just reviewed a summary of what is happening based on the economic outlook so far:

Highlights 

United States•   The U.S. is feeling the aftershock effects of the natural disasters in Japan. The elevated uncertainty pushed U.S. equity markets down, but the declines were more muted than those seen in the Japanese stock market.•   Japan’s disaster also raised volatility in the foreign exchange markets. As a result, a coordinated G7 effort was underway Friday to step into the exchange rate markets in a bid to control volatility and stem the upward trend in the Japanese yen.•   While oil prices initially dipped in the wake of the Japanese disasters, they have since rebounded.•   Despite rising energy prices, the Federal Reserve in its announcement said that the effects on inflation should prove temporary. But, there was a change in tone in regards to core inflation, highlighting that disinflation has become a thing of the past. 

Canada•   As more information flowed in and worries honed in on the minute-by-minute state of the Fukushima Daiichi nuclear power plant, the extent of the humanitarian and economic impact was constantly being reassessed.•   But, rather strikingly, equities and the Canadian dollar managed to end the week up slightly compared to last Friday’s levels, lifted in part at week’s end by the announcement of coordinated central bank intervention by G-7 countries to boost the yen. •   Abstracting from the anticipated sectoral shifts, we are not inclined to mark down our 2011 Canadian real GDP growth forecast of 3% based on the Japan crisis.  And, indeed, data this week continued to point to a solid pace of economic momentum early in the year. 

Take a look at the over all economic situation to ensure you fully understand the implication of all economic factors. For furthur question on how this will affect real estate feel free to snd queries to me at jimamitofski@networthmortgage.com.

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