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WASHINGTON (AP) - Buying binges by consumers and companies can power the economy yet catapult the trade deficit. A weaker dollar can help U.S. manufacturers but hurt American shoppers. Rising home prices can give a homeowner a sense of wealth and make a house hunter feel cash-strapped. These are just a few of the apparent contradictions of economics.
How an economic development is perceived depends on who is making the assessment — a consumer, businessman, investor or politician, for example — and how the economy is treating him.
"These economic contradictions are amplified by financial markets and emphasized by where particular individuals are situated," says Lynn Reaser, chief economist at Banc of America Capital Management. "Where something might be good news for one, it's bad news for another."
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