Economist says housing not key to recovery

While many economists believe a recovery in the housing market is key for a complete economic recovery, Nariman Behravesh, chief economist at IHS Global Insight, believes otherwise. “While housing is important, we’re less dependent on it this time around due to the record stimulus that has been passed,” Behravesh told Bloomberg News. He said he understands, however, why others place such high importance on housing data. “If housing prices drop, household wealth drops, and becomes a drag on spending. But this time, there are other tailwinds that will help,” he said. Behreavesh said factors such as larger social security payments, higher consumer spending numbers, and most importantly, the stimulus, will be more beneficial for a complete economic recovery.