Home prices are nearly back to where they were before the crash. In some places, home prices are above where they were at the peak of the national boom.Yet, the impact of rising home prices has not had the economic effect that economists expected.The Wall Street Journal addresses the issue in Why the Housing Rebound Hasn’t Lifted the U.S. Economy Much.
Just in case you were not convinced what a fragile fallacious lie the entire world's status quo has become, the Bank of Japan just provided one more straw on the camel's back of faith-based investing. As Bloomberg reports, BoJ officials are concerned that cooler-than-normal weather triggered by El Nino this summer will curb spending and weigh on an economic rebound.
The U.S. economic recovery story just keeps getting more exciting. Last Friday, we learned that GDP grew at a 4.1% rate in Q3. Today, we got confirmation that growth continues to be robust in Q4. Personal spending grew 0.5% in November, and October's growth rate was revised up to 0.4% from an earlier reading of 0.5%.
Following Part 1's exposure to the faux-prosperity of the post-2009 'recovery' and the precariousness of the Bernanke bubble, Part 2 of the series explained the dismal internals of the jobs numbers the utterly politicized calculation of the “unemployment rate” that disguises the jobless nature of the rebound (
WASHINGTON – Retail sales rose in November and jobless claims fell sharply last week, hopeful signs for an economy that appears to have slowed sharply in the fourth quarter.
Retail sales rose 0.3%, rebounding from a 0.3% decline in October, the Commerce Department said on Thursday. Economists polled by Reuters had expected an increase of 0.5% last month.
Saj Karsan submits:Many economists project a slow recovery from this recession, as consumer spending, which makes up more than two thirds of the economy, is not expected to rebound any time soon. On what basis are economists making these projections? Mounting job losses are a major reason why consumer spending is not expected to be strong, and serves as a risk to the economy going forward as we discussed here.
Brian Dolan submits:USD sputters, EUR recovers, but risk lagsThis past week saw broad based USD weakness against all other major currencies as tensions over the eurozone debt crisis eased further and optimism returned that the global recovery would stay on track. The EUR was a prime beneficiary of the rebound in global sentiment (more below), but by the end of the week its progress looked to be stalling.
Michael Panzner submits: Some experts claim that a slowing rate of decline in certain indicators is a clear sign that the economy is on the mend. Others say that aggressive fiscal and monetary stimulus can't help but turn things around.