Posted by WARREN MOSLER on March 25th, 2009
Thanks, the negatively biased reporting continues as the evidence grows that the Obamaboom is underway.
The driving force is clear- the federal deficit seems to have gotten large (albeit the ugly way- falling revenues and rising transfer payments as output falls and unemployment rises) to again support incomes and spending.
This is how it most often happens with leadership that doesn’t understand how the monetary system works.
And analysts who don’t understand how the monetary system works will be late to anticipate the recovery as well, just as they initially failed to recognize that ‘monetary policy’ would be ineffective.
But no doubt the will cast whatever happens in terms of the monetary policy actions taken by the Fed and Treasury, rather than a result of the fiscal forces from the ‘automatic stabilizers.’
> On Wed, Mar 25, wrote:
> See excerpt from todays WSJ. See they say that average prices declined
> month over month. Then look at the actual data. The mean or average
> price actually went UP from 239K to 251K but they say ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œand prices
> month over month fell too.
> They donÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢t even read the release. These numbers are confirmed on BB.
by Jeff Bater
Mar 25 (WSJ) — The median price of a new home tumbled 18.1% to $200,900 in February from $245,300 in February 2008. The average price decreased 16.7% to $251,000 from $301,200 a year earlier. And prices month over month fell, too; in January 2009, the median price was $206,800 and the average was $239,100.