Small Numbers Make the Housing Recovery Look Big

[Smaulgld]

The Housing Recovery and the Law of Small Numbers
The current housing recovery is a mirage wrapped inside a delusion. We have rising home prices, rising stock prices and a falling unemployment rate. Sounds great.


There is a disconnect, however, between the gains in the stock and housing markets and the overall economy.
Yet, we hear an incessant drone from the main stream media about a housing recovery and an economic recovery. Almost any piece of economic or housing data is seized upon by the media economic recovery addicts as evidence of economic recovery. If the data can't be spun in a recovery friendly manner, the weather is blamed.


http://smaulgld.com/housing-recovery-law-small-numbers/

[oyarde]

Where I am , there is no real housing recovery . There are a few high end houses being built , there are many empty homes for sale and many stay on the market a very long time even if very reasonably priced. Some come off and then get rented . Bank loans would be tough to get , but the interest rates are very , very good .

[oyarde]

Off topic , but I see a dreadful amount of empty commercial property as well .

[Smaulgld]

Off topic , but I see a dreadful amount of empty commercial property as well .

It's all part of the same poor economy being sold to us as "recoverying"

[Zippyjuan]

It isn't up to being a "great" economy but it is certainly improved from where it was in 2008.

[Madison320]

It isn't up to being a "great" economy but it is certainly improved from where it was in 2008.

As long as you ignore the added 8 trillion in debt and 3 trillion in QE.

[cbc58]

this is going to hurt housing - unwinding of fannie/freddie - mortgage brokers not going to be happy since this will push business to banks and consumers will be forced to pay more in fees/closing costs:

http://www.zerohedge.com/news/2014-0...-passes-hurdle

[oyarde]

It isn't up to being a "great" economy but it is certainly improved from where it was in 2008.

Not sure it can ever be a great economy again , I think the amount of govt has reached the point that there can be no real recovery.....

[angelatc]

Not sure it can ever be a great economy again , I think the amount of govt has reached the point that there can be no real recovery.....

That's what I think too. The spirit has been sucked out of the country. And it goes back to the day that TARP passed despite the objections of 95% of the population, followed up by the use of TARP to bail out the automakers in clear defiance of Congress.