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.
Report: Clinton Campaign Not Allowed on 'Morning Joe' Until Hillary Agrees to Appear | Cortney O'Brien
House Democrats Will Try To Dissolve Select Committee On Benghazi Tonight UPDATE: Voted Down, Committee Remains | Matt Vespa
Police Agencies Display 'In God We Trust' on Patrol Cars, Tell Critics to 'Go Fly a Kite' | Leah Barkoukis
Kasich: Maybe I'll Buy Bibles for Medicaid Expansion Critics, So They'll Care About the Poor | Guy Benson