General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTwo recession warning signs are here
Housing and rates are worrying some economists that a recession is looming.
"One of the biggest concerns is the housing market," said Lindsey Piegza, chief economist for Stifel, on CNNMoney's "Markets Now" live show Wednesday. "It's throwing up a very large red flag and suggests maybe this 4% growth we saw in the second quarter is not sustainable."
Home sales have declined in four of the past five months as housing prices have grown -- but paychecks have remained stagnant. Many people can't afford to buy homes, and those who can are taking on a lot of debt to get into them.
Piegza says that echoes what happened right before the Great Recession in 2008.
"We're not there yet, but this is what led us to the housing crash," she said.
https://money.cnn.com/2018/08/01/investing/markets-now-lindsey-piegza/index.html
tonyt53
(5,737 posts)Recursion
(56,582 posts)I predict it goes convex in September.
TheRealNorth
(9,481 posts)Was that the lenders were getting away with making high-risk loans because the true risk was being hidden when they were packaged by the investment bankers and sold as derivatives. When the economy slowed down and people started defaulting on home loans, the house of cards came crashing down because the low risk investments being sold were not really "low risk".
This sort of collaboration between the lenders and investment bankers was what Glass-Steagall was supposed to prevent.
pansypoo53219
(20,978 posts)index capital gains, but NOT minimum wage. revolution will happen.