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6, 2015  Recession not likely in '08  Thursday, January 3, 2008
Plunging housing market is the source of recession fears
SIKESTON -- While a recession is possible in the new year, local
financial experts say it's not likely.  "It's an unsettling
period right now," said Dr. Bruce Domazlicky, director of Center
for Economic and Business Research at Southeast Missouri State
University.  What's generating a lot of buzz of a possible
recession is the nation's plunging housing market.  "What's
happened at the high point -- maybe 18 months ago -- they were
producing 2.1 million a year, and now they're to 1.3 million a
year, and that's 800,000 fewer homes being produced. When you
look at all that's involved in producing those homes, it will
cause some problems," Domazlicky said.  The main problem seems
to be a significant excess of housing units on the market,
according to the winter edition of Southeast Missouri Business
Indicators. And there's no indi