Ouick Ouotes

"The median family income rose by 100/o in 1978 to $17,640, but people saw little benefit because a 7.60/o inflation rate wiped out most of the gain."

United States Census Bureau Washington, D.C.

"The reduced level of activity in September suggests that the tight monetary policy had begun to affect the California housing market even before the dramatic Federal Reserve actions of Oct. 6."

Clark E. Wallace, president California Association of Realtors

"It's the case of the missing recession. It's out there somewhere, but nobody can find it."

Charles L. Schultze, chairman President's Council of Economic Advisors

Commenting on. . . the coming years as a period of "adjustment" in which the ambitious anti-pollution goals of the past will be tempered by the country's continuing economic ills, "There's going to be a settling out."

Douglas Costle, head Environmental Protection Agency Washington, D.C.

o'We're getting clobbered. There's a climate that's been created, a backlash. People are frustrated and they're looking for a scapegoat. And it's turning out to be the environmentalists. I think. because we have been the people who have challenged the old positions."

Edwin Matthews, president Friends of the Earth San Francisco, Ca.

"Unfortunately, I feel that the probability of a largescale military involvement by the United States is higher today than at any time since the early 1950s."

"We expect the high cost of short term money and its impact on the availability and cost of home mortgages to cause a sharp and immediate decline in housing activity, but we don't believe it will be as severe or extended as in the 1974-75 period."

Harry A. Merlo, chairman and president Louisiana- Pacific Corp.

"Mobile/manufactured home subdivisions that offer a home-land-package with conventional longterm financing willconstitute almost half of allmobile home purchases by 1981."

Charles Agles, vice president

Nationwide Financial Services Corp. Arlington, Va.

The government should "avoid quickie tax cuts or fiddling with the federal deficit; reduce government spending; soften or scrap government regulations that devour capital but produce no wealth, jobs or government revenue."

Eric P. Thor Jr., senior economist Bank of America San Francisco, Ca.

"There is no real evidence or prospect" that interest rates are headed for a quick decline.

W. Michael Blumenthal

Former Secretary of the U.S. Treasury

"l think in the short haul interest rates are not vet topped out, but we're close."

A. W. Clausen, president BankAmerica Corp. San Francisco. Ca.

"California's foreign trade billion this year, up 120lo from lion." activity should total $41 1978's record $36.5 bil-

Security Pacific National Bank

A.G.

Matamoros, vice president and chief economist Armstrong Cork Co. Lancaster, Pa.

"2.2 to 2.4 million housing starts per year will be needed during the 1980s to provide shelter for new households and replace losses to existing housing stock."

Mortgage Bankers Association of America

"lf our guys can make it through the next six months, the early 1980s should be very good."

Stan A. Levitt, president Building Industry Assn. of Greater Cleveland

"The Federal Reserve has adequate control over the monetary aggregates, and the banks are simply profiteering by hiking their rates above what Fed monetary policy calls for."

Henry Reuss (D-Wi.), chairman House Banking Committee

"The current federal policy coupled with meaningfuldisintermediation will continue to keep interest and mortgage rates at the current high level for at least the next 90 days."

Robert M. Ciani, president S-G Mortgage Corp. Miami. Fl.

"Starts held up remarkably well in light of the continual bad news we received from Washington during October. The underlying demand for housing has and will remain strong even though it may become sidetracked for several months. Banks and s & | s may have been overly cautious as a result of the Federal Reserve Board's actions. It is still important to remember that housing is not overbuilt."

Fred Reseburg Western Wood Products Association

Portland. Or.

"We feel that savers are going to have to be better rewarded in the present inflationary environment,". commenting on proposed partial deregulation of the s & lindustry.

William S. Mortensen, president

National Savings & Loan League

Santa Monica, Ca.

"Though unwelcome, a period of general contraction appears to be necessary in order to prepare the way for renewed growth."

United Business Service

Boston, Ma.

"The recession will be shallow, about as severe as the mildest postwar recession."

Robert J. Mclaughlin Micrometrics Inc.

"It (reduced activity) suggests that the potential for oil-related disruptions will be diminished in 1980."

Citibank economists

New York, N.Y.

"The private sector's participation in multifamily housing production will continue to diminish. Multifamily development without some form of federal assistance might disappear altogether. The uncertainty caused by rent control has caused many private institutions to abandon the apartment market."

Richard L. Fore, president National Rental Housing Council

Washington,

D.C.

"The chances are very high that long-term interest rates now are at their peak. The country probably still faces a middle-size recession with a 30/o contraction in total output between its peak and trough."

Ezra Solomon, professor Stanford Graduate School of Business

Stanford, Ca.

"The continuing deterioration in consumers' real purchasing power, high interest rates and tightening credit suggest that a recession will soon develop."

Ben E. Laden, chief economist

T.

Rowe Price Associates

Baltimore, Md.

"I don't know about what's happening with anybody else, but our business is still very good," a remark heard over and over again from retailers and wholesalers in the West.