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.
The S&P 500 index has been having a field day since the advent of The Fed’s QE.
But average wages have NOT been rising as fast as home prices or the stock market.
In fact, all education groups have suffered in terms of real wage growth since 2007.
Are households simply borrowing to purchase a home with declining real wages? Nope.
And now we have secular stagnation on our hands!
Falling real wages and rising home and stock prices. Bizarro.