Now is definitely not the time for the Fed or politicians to promote further rapid house price inflation.
This week's revisions to first quarter GDP revealed that consumer confidence and spending are up despite real discretionary per capita incomes plunging at a 9.03% annualized rate. That is worse than the largest plunge during the 2008-2009 crisis (7.52%).
Since last November and the advent of Abenomics, the Nikkei has appreciated approximately 85%. Even if that rapid rise was based solely upon solid fundamentals, it shouldn’t be questioned that the parabolic move was definitely due for a pullback.
We can confirm that much of this increase was driven by the improvement of the housing sector of the U.S. economy, as 54.6% of the year-over-year net increase in the total dollar value of goods imported into the U.S. from China in 2012 is represented by such goods as household and kitchen appliances, furniture and especially other kinds of household items.
An organic recovery driven by demand emanating from real job growth adding qualified buyers to the market has not happened
Now that the federal government is playing an ever larger role in the economy, a look at Washington's track record seems to be long overdue.
Politics takes a lot of brass. And Bill Clinton is a master politician. His rousing speech at the Democrats' convention told the delegates that Republicans "want to go back to the same old policies that got us into trouble in the first place."
Just 49 percent of homeowners in America now believe their home is worth more than they paid for it.
Left-wing pundits and politicos continue to insist that Mitt Romney has yet to express what he wants to accomplish as President.
There are two Americas. No, I am not adopting occupy-style rhetoric that pits one group of Americans against another. What I am talking about is the fundamental difference between America’s entrepreneurial private sector and America’s cumbersome public sector.
Despite the obvious, policymakers and wonks think trimming mortgage principal down to just 10 percent underwater or that lowering borrowers' financing costs for those 25 percent (or more) underwater will somehow halt the slide in home values and spur consumer spending.
But it's not just Gingrich and Romney. Virtually every Republican and conservative across America recognizes what is by now well established in the literature -- the government caused the financial crisis.
There was our President stating once again that he had a plan to fix the housing crisis that is stalling our economy and harming his reelection chances. When he was done making his proposal, it occurred to me that after 35 years of my working in the real estate market this man really had no more idea of how to resolve the problem than the average homeowner.
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