Stocks Soar While Housing Market Stumbles and GDP Turns Negative
Something is terrible wrong
According to Fed Chairs Bernanke and Yellen quantitative easing was supposed to boost the stock and real estate markets and produce a “wealth effect”. The real estate market is slowing down with pending home sales, mortgage applications and sales plummeting but the stock market continues to hit new highs. When faced with poor economic data like a negative 1% GDP in the first quarter the media and the Fed put an unbelievable Panglossian spin on it.