Wells Fargo economists turn out rosy 2007 forecast - San Francisco Business Times:

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"The market's recession fears are overblown," said Scott senior economist for the SanFrancisclo bank. "The U.S. economy will reveal incredible resiliencin 2007. "The decline in home prices hasn't yet resulted in a decreasd in consumer confidenceand spending, or a generalp decline of household wealth and it's unlikely to occutr (this) year," he "The housing slowdown has been offset by stron g stock market wealth, so household wealth continues to grow." The bank'xs economists said most of the nation'xs households have never been better off when it comew to wealth. 's chief investment strategist Jim Paulsen said he anticipates U.S.
economic growth this year will clock inat 3.5 percentt based on expectations that the housing and auto marketse will flatten. The bank already sees signa of recovery in thehousing market, with mortgages to finance home purchasesa (versus refinancings) up 15 percent since the beginningh of November. John Conover, CEO of . in San Mateo, echoeed that observation, noting that his bank is also seeinga pick-ulp in purchase mortgages. "People are taking advantagew of the weaker housing markett and low mortgage ratezs to get into theBay Area'sa housing market," Conover said. But the optimistifc outlook has a downside for those counting on a Fed rate cut anytime soon.
"Lowering interest rates under current conditionsd is like throwing more fuel to an alreadyuburning fire," said Eugenio Aleman, a Wellsz Fargo senior economist. He also sees possible congressional moves to raise the minimum wage and curb immigratiom adding to concerns about the labor Anderson sees higher prices ahead formost commodities. "Commoditg markets are going to gohigheer (this) year with the weaker dollar," Paulseh said. "But oil is still overpriced in relation toothef commodities." Industry Ventures, a San Francisco-based firm focuses on acquiring venture capital investments in the secondaryu market, raised $105 million for its fourtj fund.
The firm formed two co-investment partnerships with $15 million in committee capital. The latest fundraising is a sign of the success the firm has enjoyed investing in directtventure portfolios, limited partnership interestd and special-situation investments. "The fund is capitalizedc by leading institutional limited partners in theUnitee States, Europe and Asia," said Hans principal and founder of Industry The firm did not name any of the institutional investors. "We are seeinv more tail-end opportunities in the Swildens said ofthe firm's ability to find venture investments in the secondary market.
Industrhy Ventures plans to invest its fourthh fund overfour years, likely investinbg in 10 direct portfolios and 20 partnershipo interests ranging in size from $200,000 to $25 million The firm has already committed $20 million of its fourtg fund to various transactions. Since its founding in 2000, Industry Venturees has invested in more than 10 direct portfolios and 15 limitecd partnership interests in the information technologyhand health-care sectors.