The pundits have caught up with us. Wednesday's report on new home sales from the Commerce Department "raised concerns" among economists that the housing market may be overheating. We have been warning that the conditions for this have been present for the past several months. Ironically, this has been due to the rise in mortgage rates in the second half of last year. That rise is driving a buying panic among those on the bubble--that is buyers who barely qualify for a mortgage and those who might have been undecided about purchasing before rates moved up.
Red Hot Housing Recovery? Not Quite
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David Stockman’s Contra Corner isn’t your typical financial tipsheet. Instead it’s an ongoing dialogue about what’s really happening in the markets… the economy… and governments… so you can understand the world around you and make better decisions for yourself.
David believes the world -- certainly the United States -- is at a great inflection point in human history. The massive credit inflation of the last three decades has reached its apogee and is now going to splatter spectacularly.
This will have lasting ramifications on how governments tax and regulate you… the type of work you and your family members will have available and what you get paid… the value of your nest egg… and all other areas comprising your quality of life.