The Fed’s Bizarro World Economics: Rising Home Prices, Soaring Stocks, Fallen Real Wages

By Anthony B. Sanders – Re-Blogged From http://www.davidstockmanscontracorner.com

I have often wondered when the media would catch on to the REAL story about why the housing market is so slow to comeback, in terms of borrows applying for a mortgage. Particularly since The Federal Reserve has help the holders of capital with it’s monetary expansion.

Home prices have been rising rapidly since 2012 and QE3.

fedhp

The S&P 500 index has been having a field day since the advent of The Fed’s QE.

fedsp500

But average wages have NOT been rising as fast as home prices or the stock market.

wagegrowthfed

In fact, all education groups have suffered in terms of real wage growth since 2007.

ECPChart

Are households simply borrowing to purchase a home with declining real wages? Nope.

motgoutfed

And now we have secular stagnation on our hands!

secstag

Falling real wages and rising home and stock prices. Bizarro.

CONTINUE READING –>

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s