But as auto plants add more shifts and as more parts are ordered from manufacturers, the more the economy will start to grow. Money has already started to flow from housing into the autos. Soon, the effects should be felt in retail and consumer discretionary. This will be how we climb out of this hole.
The Federal Reserve is in a tough spot, because it's obvious that they need to taper, but the effects might make all the hard work we've done to climb out of this hole worthless. If mortgage rates continue to climb, demand will go down. I don't think anyone's arguing that.
But as housing goes, the contractors go. As they go, the auto sales go and soon the whole thing will unwind. But the opposite is also true should housing demand remain high.
While we absolutely need the innovative, white collar workers of America, we just as badly -- if not more -- need the hands-in-the-dirt blue collar workers if the economy is ever going to roar its way back.-- Written by Bret Kenwell in Petoskey, Mich. . At the time of publication the author long AAPL and F. Follow @BretKenwell This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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