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 SanFranciscio bank. "The U.S. economy will reveal incrediblee resiliencein 2007. "The decline in home pricese hasn't yet resulted in a decreasse in consumer confidence and or a general decline of householc wealthand it's unlikely to occur (this) year," he "The housing slowdown has been offse t by strong stock market wealth, so household wealth continues to grow." The bank's economists said most of the nation's households have nevefr been better off when it comes to wealth. 's chiet investment strategist Jim Paulsen said heanticipates U.S.
economicv growth this year will clock inat 3.5 percent based on expectationw that the housing and auto markets will The bank already sees signs of recovery in the housing with mortgages to finance home purchasese (versus refinancings) up 15 percengt since the beginning of November. John CEO of . in San Mateo, echoec that observation, noting that his bank is also seeingga pick-up in purchase mortgages. "People are takinhg advantage of the weaker housing market and low mortgagwe rates to get into theBay Area'xs housing market," Conover said. But the optimisti c outlook has a downside for those countinfg on a Fed rate cutanytimde soon.
"Lowering interest rates unde r current conditions is like throwing more fuel to an already burning saidEugenio Aleman, a Wells Fargko senior economist. He also sees possibl e congressional moves to raise the minimu wage and curb immigratioh adding to concerns about thelabor market. Anderson sees highet prices ahead formost commodities. "Commodit y markets are going to gohighetr (this) year with the weaker Paulsen said. "But oil is stillk overpriced in relation toother commodities." Industry Ventures, a San Francisco-basef firm focused on acquiring venture capitak investments in the secondary raised $105 million for its fourt fund.
The firm formed two co-investment partnershipds with $15 million in committed capital. The latest fundraising is a sign of the succesws the firm has enjoyede investing in directventure portfolios, limited partnershilp interests and special-situation investments. "Thre fund is capitalized by leading institutionak limited partners in theUnited States, Europe and said Hans Swildens, principal and founder of Industrhy Ventures. The firm did not name any of theinstitutional investors. "We are seeing more tail-end opportunities in the Swildens said ofthe firm's ability to find venturde investments in the secondary market.
Industry Ventures plans to invesrt its fourth fund over four likely investing in 10 direct portfoliox and 20 partnership interests ranging in sizefrom $200,000o to $25 million each. The firm has alreadu committed $20 million of its fourtjh fund tovarious transactions. Since its foundingt in 2000, Industry Ventures has invested in more than 10 direcft portfolios and 15 limited partnership interestsd in the information technologyand health-care sectors. Past portfoliozs acquired by the firm include investmentdsfrom , , , , , and . , parentg of First National Bank of Northern brought on board Dave Curtis as its chiefffinancial officer.
Curtis succeeded Jim Ramsey, who retirefd last month from the SouthSan Francisco-baseed bank. Curtis most recently was senior vice president and controllerat , the holding compan for Merced-based , which has an officee in S.F.'s financial district. FNB said R. Albert Roensch resigned as a directord due to the demands on his time as CEO of in Palm First National Bank of Northern California hasabout $600 million in assetsw and 13 branches in San Mateo and San Franciscio counties.