Monday, September 26, 2011

housing blows:tell us something we don't know

today's economic headline in the US domestic economy is that new home sales fell to a six-month low in august. USA today concludes its lede paragraph by nothing that for this to happen at the height of the buying season suggests the sector is years away from recovery.

to explain this phenomenon, the paper points out the following:
Big housing blow: New home sales fall, again – "High unemployment, larger required down payments and tougher lending standards are preventing many people from buying homes. Plunging stocks and a growing fear that the U.S. could tip back into another recession are also keeping people from entering the housing market.
Pierre Ellis, an analyst at Decision Economics, said that until wages increase and hiring picks up, home sales will languish."
so, what's new guys?

if they really want to be of service, perhaps they might tackle the question of why wages are stagnant and hiring is stuck in the dumps. those are, of course, two fundamental aspects to any economy, and when you have no hiring and stagnant wages, you're moving in a retrograde fashion.

there is, at its heart, a matter of who controls the economic destiny of the US, which just happens to be the oligarchy that has most of the financial resources, as well as ownership of most of the politicians and the control of mass media. even USA today, that presents this analysis, is captive to the oligarchs that sit on its board and own its stock.

no, we just stuck in one big conundrum, where for reasons beyond anyone's comprehension or control, we seem to be stuck in this downward spiral of slack hiring and retarded wage growth. somehow, while the "job creators" are doing just dandy, the economic situation for the mass majority of US workers is in a perpetual downward slide.

for those of you touting ron paul as the savior, don't get your hopes up. it's a little late in the game for your magical thinking, my friends.

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