While some await the Census Bureau workers' next release of New Residential Sales data on May 26, 2015, the National Assoication of Relators have released Existing Home Sales data. The story looks bleak.
Always, numbers without context lack meaning.
While Existing House Sales looked to be bettering from the low of Q4 2008, that bettering stopped August 2013. Since then the trend has been worsening.
In spite of the worsening state of existing house sales, if you have the income, likely these are among the best days to buy a house in decades.
However, far too many Americans cannot swing a mortgage to buy a house. That, my readers, is the biggest problem vexing the economy.
There are many could-be buyers, but few would-be buyers because so few have the means to swing a mortgage. And yet, True Dollar™ prices run near 50% off.
The inane policy of Quantitative Easing impaired extant capital. To restore returns to capital bought with credit, enterprisers had to cut labor.
After all, wages arise solely from capital. Absent capital, there can be no wages.
Not until all of the impaired capital has been written off, can enterprisers begin to undertake new capital on much lower interest rates. Yet, once enterprisers can, new capital formation will give rise to wages.
We're catching glimpses of this dynamic of capitalism expressed in the labor markets. First there was massive layoffs, unemployment and the need to collect SNAP food welfare from Congress. Of late, there has been a steady decline in True Unemployment in the working age population.
Enjoy one from one of my all-time faves, The Boys!