WSJ today (9/17) reports: "Housing Seems Set to Aid Economy a Bit."
I have recently read in the WSJ that the U.S. Government is guaranteeing the vast majority of new mortgages because banks would not otherwise lend.
I have also read that FHA mortgages are defaulting left and right.
Credit delinquencies continue to rise on both mortgages and credit cards as citizens have lost jobs and lost income.
It seems to me that the preoccupation with housing numbers reflects the misguided assumption that housing must recover in order for the economy to recover.
Reich comments that the U.S. economy should not simply be re-inflated. He argues it must be re-invented.
Housing is not the solution to the US economic woes...