The stock market reacted mildly to some devastating economic news today. In fact, the stock market appears to be in denial about the state of America’s economy.
Existing home sales fell in May. As of this morning, economists expected a six percent increase.
Economists expect new home sales to be worse than existing home sales.
And economists expected home sales to fall off the table in July and for the remainder of 2010.
But the actual housing market is already worse than economists were thinking. And now over 56 percent of economists expect home prices to fall throughout 2010.
And the bad news keeps pouring in.
Europe is going on a spending and borrowing diet – the sort that tea partyers have advocated for the USA. But Obama wants to keep on borrowing and spending, borrowing and spending, extorting and bribing. The contrasting strategies threaten to create a rift in the G20 at a time when unity is pretty important for economic stability.
Obama wrote a letter to his European counterparts on Friday urging them borrow and spend more. Apparently, he wants the whole world to crash together. Are his projections so ugly that he’s afraid Germany will be bailing out America?
Cuts in government spending now may cause some short-term pain in the US economy, but continue irrational borrowing will send the US off a cliff into debt slavery. That Obama and his minions no longer bother to argue that point tells me they don’t care about the consequences of their policies.
See the W?