By Michael Pento – The evidence of a double-dipping housing market and economy are becoming undeniable, even to those who still perilously cling to the notion that government intervention has been a salve instead of a poison.
The main evidence presented on the part of the perma-bulls of a healing economy is that corporate earnings have been good. However, S&P 500 earnings from multi-national corporations have been significantly boosted by a U.S. dollar that has lost nearly 15% of its value in the past 12 months.
What does all this mean for the Fed? A slowing economy with rising unemployment and falling home prices will, unfortunately, keep the Fed in the ship building business (think QEIII) for quite some time. more> http://tinyurl.com/3uuxasl
- Horror for US Economy as Data Falls off Cliff ↑
- Bay Area Real Estate: Beginnings of the double dip? Anna Marie Hibble, Jenny Pisillo, Carolyn Said, Robert Selna; SFGate
- Manufacturing Booms as Deere Exemplifies Productivity Surge, Vivien Lou Chen and Rich Miller, Bloomberg
