By Greg Hunter’s USAWatchdog.com
My slogan is “analyzing the news to give you a clear picture of what’s really going on.” So, I spend a significant amount of time watching news on TV and the Internet and even the good old fashioned newspaper. If you only got your news from the mainstream media (MSM), it’s easy to understand whyso many people think the economy is not all that bad. For example, yesterday, I heard the “R” word a lot. No, I am not talking about recession but “recovery.” This is preposterous when you consider the latest report from the Case-Shiller Home Price Index that was released yesterday. The spin from the MSM said home prices were down from October to November by 1.3%. Makes you think—ok, not too bad. The real story is home prices declined on average by nearly 4% year over year. A quote straight from the actual Case-Shiller press release said, “For a second consecutive month, 19 of the 20 cities covered by the indices also saw home prices decrease. The 10- and 20-City Composites posted annual returns of -3.6% and -3.7% versus November 2010, respectively. These are worse than the -3.2% and -3.4% respective rates reported for October.” (Click here for the complete Case-Shiller press release.)
Are you getting this? The real estate market is getting worse. The only city that saw an increase was the pork capital of the world—Washington D.C., and prices were only up by a paltry .5% year over year! All the folks I heard, yesterday, on the MSM talked as if the so-called “recovery” was alive and well, when the evidence shows unfolding disaster. Please keep in mind, home prices are falling despite the fact the Federal Reserve is suppressing interest rates. A 30-year mortgage is going for around 4%. What do you think will happen when rates rise to around 6.5% (a very good historical rate)? Don’t you think home prices will continue to slide?
Yesterday, I heard at least two different “experts” say the economy was “getting better.” The latest news about the Baltic Dry Index (BDI is mostly a measurement of global shipping rates) says just the opposite. Brandon Smith, from Alt-Market.com, says the BDI “is plummeting like a wingless 747 into the swampy mire of what I believe will soon be historical lows.” Smith says this is foretelling bad times, not good. (Click here to read his most excellent post.)