Tuesday, December 22, 2015

U.S. existing home sales' plunge Should Not Be A Surprise

The Economic Activity Composite (EAC) tells us that the US economy is significantly weaker than advertised. A business cycle transition from prosperity to liquidity, the cycle driving the EAC, suggests it's only matter of time before more heavily-followed and lagging economic statistics such as labor trends and Gross Domestic Product (GDP) confirm it.

U.S. existing homes sales unexpected collapse should surprise no one. Regulations designed to protect investors, homeowners, the masses against the evil doers during periods of greed generally fail miserably when greed unexpectedly turns to fear. Investors and homeowners will recognize the failure as growing ill-liquidity within the real estate market.

Looney Tunes
The majority, generally a day late a dollar short, won't notice something has changed in the real estate market until the anvil drops on its head.

Headline: U.S. existing home sales plunge; new rules seen as drag

WASHINGTON (Reuters) - U.S. home resales posted their sharpest drop in five years in November, a potential warning sign for the health of the U.S. economy although new regulations on paperwork for home purchases may have driven the decline.



Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.