Rising home prices and an improving economy will spark a modest rebound this year in U.S. home equity lending, the driver of about 2 percent of consumer spending in the first half of the decade. This time around, lenders and homeowners will be more cautious about converting their equity to cash, muting any boost to the economy after the worst slump since the Great Depression, said Greg McBride, senior financial analyst with Bankrate.com.
“Home equity borrowing wont be the economic crutch it was a few years ago,” - - - - >

A stronger yuan could help Chinas leaders achieve their goal of making the economy more self-sustaining by boosting consumer buying power and reducing dependence on exports and investment. It could narrow Chinas politically volatile trade surplus, making the flood of foreign money pouring into the economy more manageable.
A change might also help defuse tensions with the United States, Europe and other trading partners that complain an undervalued yuan makes Chinas exports unfairly cheap and hurts foreign competitors, possibly prolonging the global economic crisis. Some American lawmakers are calling for punitive tariffs on Chinese goods if Beijing fails to act.
Analysts say - - - - >

Wen, speaking in an interview with the official Xinhua News Agency, said property prices have risen too quickly in some areas and that tax and interest rates are among tools that could be used to control speculation. His remarks were broadcast online today.
Chinas property prices climbed last month at the quickest pace since July 2008, adding to concern that record lending may create asset bubbles in the worlds fastest- growing major economy. Wen isnt the only one concerned about overheating: central bank adviser Fan Gang said - - - - >

But leaders stressed the need to lessen the local economys reliance on casinos even as they commemorated the success that has helped this southern Chinese enclave surpass Las Vegas as the worlds most lucrative gambling market.
“In the next five years, we will actively promote the diverse economic development of Macau,” said the territorys new leader, Fernando Chui, after being sworn in by Chinese President Hu Jintao.
The tiny territory, best known as a dingy casino town in the past half-century of its 400-year history as a Portuguese colony, returned to Chinese rule on Dec. 20, 1999, as its economy was shriveling - - - - >

Fed officials meet for the last time this year Dec. 15-16 after a report last week showing employers cut the fewest jobs in November since the recession began in December 2007. The report prompted some investors to raise bets the Fed would increase rates by the third quarter of 2010.
Treasuries climbed yesterday after Bernanke set back those perceptions, saying the economy faces “formidable headwinds.” He repeated the language of the last Fed statement in November foreseeing an “extended period” of low rates and said inflation might - - - - >

The Organization for Economic Cooperation and Development more than doubled its estimate for 2010 growth in its 30 member countries - which include the U.S., Japan, Germany and the United Kingdom - to 1.9 percent.
Still, the recovery is expected to remain fragile.
“In most OECD economies, growth is likely to fluctuate around a modest underlying rate for some time to come,” said the organizations top economist, Jorgen Elmeskov, in an editorial.
“It is being held back by still substantial headwinds. It is only some time down the line that the recovery will become sufficiently strong to begin to reduce unemployment.”
The OECD also - - - - >

Policy makers will probably maintain their commitment to keeping rates low for an “extended period,” said Laurence Meyer, vice chairman of Macroeconomic Advisers LLC in Washington and a former Fed governor. They may also start a discussion about altering the wording of their policy statement, to leave them more leeway to signal a change in the future.
Chairman Ben S. Bernanke and his colleagues are reluctant to raise rates until the labor market shows signs of recovery, even though a report last week showed the economy resumed - - - - >

The Institute for Supply Managements index of non- manufacturing businesses rose to 51.5 last month, the highest level since April 2008, according to the median forecast of 77 economists surveyed by Bloomberg News. Another report may show companies continued to cut jobs.
Government efforts to boost spending and keep borrowing costs low are stoking a rebound from the worst recession in seven decades. The pickup has yet to encourage hiring, probably ensuring Federal Reserve policy makers today will reiterate plans to keep their key interest rate near - - - - >

Construction started last month on 610,000 houses at an annual rate, the most since November, according to the median forecast of 53 economists surveyed by Bloomberg News before an Oct. 20 Commerce Department report. Sales of existing homes rose to a two-year high and the gauge of the economys future course advanced for a sixth month, other reports may show.
Housing is stabilizing as Americans take advantage of government programs, including credits for first-time buyers and efforts to lower borrowing costs, aimed at stemming the recession. Some - - - - >

By reaching into those reserves, major oil producers like Saudi Arabia shielded their economies from the worst of the slump by maintaining government spending and injecting liquidity into domestic banking systems rattled by the credit crisis.
Doing so not only blunted the impact of the downturn on their own economies, but also helped shore up the economies of neighboring countries without large oil reserves, the IMF said.
“By and large, they all responded quickly and decisively. … They continued spending,” the IMFs Middle East and Central Asia Director Masood Ahmed said of the major oil exporters. “This acted, if you like, as - - - - >