ABC personal finance subcomponent
Down but not out.
Weakness, but probably no recession as per Bernanke’s latest address before Congress.
Inflation ripping, as Fed staff raises it’s near term forecast.
The Fed ‘fights inflation’ with ‘slack’.
The Fed waiting for slack to be reduced before turning its attention to inflation is illogical at best.
Without the much anticipated further decline in home prices the Fed will find itself that much further ‘behind the inflation curve’.
The Fed needs the housing decline for its models to forecast inflation returning to comfort zones.
How much of a housing decline do you think the fed is looking for? Case-Schiller clocked-in at an unprecedented decline of 9% yoy last month.
maybe another 25%
and they now need it for their models to forecast declining inflation
Many people are remaining in foreclosure limbo for more than a year before they are evicted by the banks. That’s allot of ‘net financial assets’ going to the consumer.
yes, free rent means more spending elsewhere