Today's headlines are about the "improving" economic indicators. It is pointed out that new applications for unemployment are nearly flat, but the two improvements have to do with housing and the Stock Market. In other words, all that pumping is buoying the Stock Market and pushing house sales. Thirty year mortgage interest has dropped now to 3.54% and anyone with money is buying homes.
Is that a good thing? Not really. Today's low interest loans will show up as "problem loans" in the banks' ledgers in years to come.
How about manufacturing and consumer sentiment? Nope, not those.And that is why the FED keeps pumping.
Thursday, March 21, 2013
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