Mainstream media economist are growing concerned that they may have been wrong in projecting growth for the housing market in 2014.
Sales of pre-existing homes fell 7.5% from a year earlier to the lowest level in over 1.5 years. New home sales have fallen 14.5% and mortgage application are down 19% from a year earlier.
Initial reporting had blamed the downturn on “bad weather” but it appears even good weather is a curse for home sales.
The jobless recovery is being seen for what it is; fraudulent. The Fed can manipulate paper trades in the stock market but they can’t fill new homes with invisible buyers that don’t really exist. People simply cannot purchase new homes on part-time low wage jobs. A healthy economy must be consumer driven or it’s not healthy.
We continue to see similar parallels to what was taking place in the housing market just prior to 2007. The data points to another housing bubble and the Fed is helpless to prevent it from bursting this time as well.
Hold on for a bumpy ride because it’s only getting worse.
Gold Goliath is not your typical gold dealer.