Editor's Note: No one understands the complex, unhealthy relationship between the Federal Reserve and the economy like Lee Adler at Wall Street Examiner. Today he's calling out the Fed's zero-interest-rate policy for what it's done to our housing "recovery." Here's Lee with five charts that detail how damaged our housing market really is…
Don't believe any headlines that claim there's a housing "recovery" in the United States. The truth is, there is no single family housing industry to speak of today.
What for generations was a main driver of U.S. economic growth has been brought down by the past seven years of the U.S. Federal Reserve's zero-interest-rate policy (ZIRP). ZIRP has been a disaster for the U.S. economy, the middle class – just about every facet of American economic life has suffered from this fiscal disaster masquerading as coherent monetary policy.
Today I'm going to show you five charts that tell the story of exactly how much damage the Fed has done to U.S. housing. Most are derived from this week's release of new home sales data from the U.S. Census Bureau.
You'll see how the rise in home sales since 2011 has really been a four-year dead cat bounce that hasn't helped most Americans, hasn't meaningfully contributed to U.S. economic recovery – and now appears to be stalling.
About the Author
Financial Analyst, 50-year charting expert, finance + real estate pro, and market analyst; published and edited the Wall Street Examiner since 2000.