The emergence of China as an economic superpower

Nouriel Roubini, professor of economics at New York University, wrote on his blog last Wednesday, “The collapse of housing market would bring the Unite State to a great recession in 2007.”

While the Fed’s policy-makers may share the same concern with Professor Roubini in the U.S. housing sector, he surely stands along in indicating a recession next year.

The simple fact is, that housing sector as a major assets market is always under the Fed’s radar screen. By adapting the proper monetary policy measures, the Fed would have no difficulty stabilizing the housing market. The Chairman of the Fed, Ben Bernanke told Americans last month that the U.S. economy would experience a moderate growth with moderate inflation.

Of course, if the oil prices keep going up, there will be another story.