Home prices fell for a seventh straight month in February as a wave of distressed properties continued to wash over the U.S. market, real-estate data company CoreLogic Inc. said ThursdayAnd here's the article link: HOME PRICE INDEX DROPS 6.7% IN FEB
This will get worse as foreclosures pile up and real unemployment persists. I have read numerous accounts of people with contacts at banks telling them that delinquency and default rates keep getting worse, despite the seemingly cheery economic news that is shovelled at us from NYC and DC.
Here is my early January post, for your reading leisure: LINK
How does this relate to my QE3 view? I do believe that the Fed will jerk us around and maybe even play "chicken" with reality by following thru with the signals it is sending right now and will temporarily cease implementing the QE programs. We may go for a few months without any overt money printing, although I'm not sure how the Government Treasury auctions will be funded (see this report from zerohedge if you wonder why I say this: LINK).
But you need to ask yourself, if you do fall into the mistaken view of believing the garbage coming from the Fed and Obama, have any of the problems that created the banking system collapse in 2008 been solved? The answer is unequivocally "NO." In fact, the papering over of the problems and shifting a substantial amount of bad financial industry debt onto the Government balance sheet have served to exacerbate and magnify the true endemic/systemic problems. Ultimately the Fed will "blink" as the economy collapses again and we'll get served up a huge helping of QE3, justified by the "problems" inflicted upon us by the "evil-doers" in the Middle East and the collateral economic damage caused by the Japan disaster.
And if the market truly believed that QE3 would not happen, wouldn't that be reflected with a big rally in the dollar? Got or getting gold/silver everyone????