As the FT notes this morning:
The typical American family now earns less in real terms than in 1989 after household incomes fell for the fifth consecutive year, highlighting how the sluggish recovery is crimping spending power even as the US Federal Reserve considers slowing its monetary stimulus.
The data is similar here where incomes have also been steadily and long term underlying growth for most people has been very limited. In much of Europe it is worse.
All of which makes talk of recovery based on house price growth for a few somewhat sickening.
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The concept of house price growth being a sign of recovery is an utter absurdity -what: low wages and most of household income going on rent/mortgages? Rentier recovery perhaps!
We are in recovwery!! Well…until that looming credit bubble in Asia pops…the one that seems to have been reported in th mainstream press.
It is believed because of bond yields, interest rates are slowly stating to creep up.
If (or when) either events happen, watch this so-called recovery go “POOF”!!
“We are in recovwery!! Well…until that looming credit bubble in Asia pops…the one that seems to have been hardly been reported in th mainstream press.”
sorry! That’s how that sentence should have read!
Stevo is right and the fact that US QE is continuing demonstrates that any recovery is all smoke and mirrors!
QE = life support for the banks.