What's soft landing?
Answer:
Current levels of housing investment are unsustainable. If the number of houses being built each month remains at current levels, the number of houses will outnumber the number of people in the US needing houses. Therefore, it is inevitable that the amount of building activity must fall in the near future. This could either happen through a sudden slump (known as a hard landing) or gradually (known as a soft landing).
In a hard landing, building activity falls to a sustainable level quickly, but as a result many building workers will suddenly find themselves unemployed and many small businesses that manufacture planks, tiles, door knobs and other things that are used to build houses will go broke.
In a soft landing, adjustment takes place gradually. In this instance, only a few people lose their jobs each month, rather than having many thousands all lose their jobs at the same time. If this happens gradually, those who are unfortunate enough to lose their jobs have time to find alternative jobs and be absorbed by job opportunities elsewhere in the economy, so unemployment doesn't shoot up, and people aren't left without incomes for an extended time. This is why most people are hoping for a soft landing rather than a hard landing.
WHEN AN ELEPHANT LANDS ON AN ENORMOUS MARSH MELLOW OR WHEN YOU SEE A LEAF DROP INTO THE FLOOR IN THE NIGHT AND ONLY YOU SEE IT.
carpet on the stairs
it's not a hard landing
A soft landing is where the economy is slowing down and bottoming out but not at a rate that is going to hurt.
A hard landing is where the economy is falling at a rate which is likely to cause pain and hardship. A depression.
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
Other Questions and Answers: