Originally published by Seth Mason of ECOMINOES
Investors are once again throwing cheap, Fed-provided capital into real estate, promoting price increases and inflating a new housing bubble.
If the “recovery” in the housing market were legitimate–i.e. if it were a function of an expanding economy and consumers were driving the market–one would expect the number of mortgage applications to be increasing. An increasing number of mortgage applications would be a natural byproduct of more Americans are getting hired, earning more, and buying houses.
But, of course, this isn’t the case because this isn’t a recovery.In reality, the number of mortgage applications has been shrinking, both in real terms and in terms of year-over-year change:
But the shrinking number of mortgage applications hasn’t stopped investors from partying like it’s 2005:
The new housing bubble will either continue to expand and eventually burst a la 2008, or it will decompress like a whoopee cushion if the Fed “tapers off” the liquidity pumping too quickly.
The market wouldn’t be destined for one of these less-than-ideal outcomes if the “recovery” were based upon consumer demand instead of money created out of thin air and artificially-low interest rates.
It's FINALLY HERE!
Kevin Jackson's hilarious take on Race-Pimping: The Multi-Trillion Dollar Business of Liberalism!
Enjoy this excerpt from the book:
"In actuality, black people will go to substandard hospitals, wait in long lines behind illegal immigrants, and be treated like non-citizens, as there simply won’t be enough healthcare to go around. There will be the occasional lucky few who will receive treatment, and we will parade them around like championship rings, thus continuing the ruse. As you can see, we’ve left out nothing. We touch more on this in Chapter 10: Promise Everything, Deliver Nothing. If for some reason we happen to run out of blacks, we will be able to apply our trade to the Mexicans with little disruptions. Plans are already underway for our next edition in this “How To” series: How to be a Latino "Race Pimp for Fun and Profit…even if you’re Illegal."