“Over the past year, the Federal Reserve has ramped up its policy of quantitative easing, with the result being new stock market highs and surging bond prices. Moreover, housing prices jumped 8%, the biggest annual gain since 2006. The result is that more than a trillion dollars have been added to the market value of single-family homes. Homeowners are now wealthier and according to what economists call the ‘wealth effect,’ they should be willing to spend more, helping the economy. But recent data released by FHFA suggest that the increase in house prices is not being driven by a broad-based improvement in the economy’s fundamentals.”
http://online.wsj.com/article/SB10001424127887323646604578400252745095518.html
Related posts:
10 investing insights from Street Smarts by Jim Rogers
John Whitehead, America’s Reign of Terror: A Nation Reaps What It Sows
Bitcoin, the Darknet Economy, and the Low Over-Head Revolution
Thaddeus Russell: 'A Renegade History of the United States'
7 Lessons I Learned About Investing in Bitcoin
Learn Bobby Tay’s $2.7 Trillion Sigma Secret
What’s the greatest deception of our time?
Bob Higgs: The State Is Too Dangerous To Tolerate
The Road to the Permanent Warfare State, Part 12 - Gregory Bresiger
The Unlikely and Remarkable You
Oil and Water: An Armed Citizenry and a Police State
Sheila Bair’s Bailout Blame Game
Life in the Electronic Concentration Camp
South Africa and Ending Apartheid: The Free-Market Road Not Taken
Let’s Make America Free Again: We’re Walking a Dangerous Road