Thursday, May 26, 2016

Pending Home Sales Surge To 10-Year High

The National Association of Realtors’ pending home sales index hit 116.3 in April, its third straight monthly climb. The index is 4.6% higher than it was a year ago and is at its highest level since February 2006.

The idea that the December Fed rate hike was "propaganda" and would be quickly reversed appears more absurd with each passing day,

We are, in fact, at what appears to be the start of a multi-year climb in interest rates. Austrian-lites who think the Fed can't raise rates without immediately crashing the entire economy have a fundamental misunderstanding of Austrian school business cycle theory.

 -RW

1 comment:

  1. Wezel, do you just like to misrepresent people or are you just a dullard?

    " Austrian-lites who think the Fed can't raise rates without immediately crashing the entire economy have a fundamental misunderstanding of Austrian school business cycle theory." -Austrian-know-it-All

    Nobody said the FED can or can't do anything. What we are saying is that they WON'T. Is that so difficult to understand? I'll say it again, in plain, in layman's terms for you. The FED won't raise rates, because they don't see the economy as a complete bed of roses and they are a political tool. To recap...

    FED = Political Tool
    RW = Plain old Tool

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