Study: Wisconsin Economies Will not be Harmed by Mortgage Problems

A report conducted by Global Insight Inc. for the U.S. Conference of Mayors holds dire predictions about the effects of the current mortgage industry problems. The report states that US GDP will be $166 billion lower as a result of the mortgage crisis, and there will be 524,000 fewer new jobs created in 2008 due to the ripple effects.

States that had the highest growth in property values in the recent past, such as California, Nevada, and Florida will be hit hardest by the mortgage industry problems. When home values were rapidly increasing, investors and speculators jumped on the bandwagon and helped to increase prices even further.

Apparently, investors and speculators did not flock to Wisconsin, but this could turn into a silver lining for the badger state. None of the $166 billion expected to be lost as a result of the mortgage crisis in the US is expected to occur in Wisconsin Metropolitan Statistical Areas (MSAs).

The report states that of the 10 of 11 MSAs in Wisconsin are expected to have positive Gross Metropolitan Product Growth in 2008:

One Wisconsin county, Kenosha, is counted as a part of Chicago’s MSA and is expected to lose about 0.6% of Gross Metropolitan Product Growth in 2008.

St. Croix/Pierce counties are part of the Twin Cities MSA and are also not expected to be adversely affected.

The total dollar amount expected to be lost in Wisconsin MSAs is exactly zero.

For comparison, here are more dire predictions from some other randomly selected areas:
 

 Despite the media hype and some very real problems that the mortgage fallout will cause, at least one study does not believe this will adversely affect Wisconsin.

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