The Housing Recovery and the Law of Small Numbers
The current housing recovery is a mirage wrapped inside a delusion. We have rising home prices, rising stock prices and a falling unemployment rate. Sounds great.
There is a disconnect, however, between the gains in the stock and housing markets and the overall economy.
Yet, we hear an incessant drone from the main stream media about a housing recovery and an economic recovery. Almost any piece of economic or housing data is seized upon by the media economic recovery addicts as evidence of economic recovery. If the data can't be spun in a recovery friendly manner, the weather is blamed.