The MFP is rightly attributing this fall in pending home sales to the precipitous rise in mortgage rates since May, though the NAR would have you believe that the shutdown beginning on October 1 somehow affected pending sales from September. Houses have become dramatically more unaffordable since May from rising rates and housing prices against the backdrop of stagnant incomes. The only way for the housing market to improve at this juncture would be from gains in consumer income, which is not in the cars.
If you wish to know the Fed’s future money printing output, this is the only chart you need to understand. The Fed buys bonds, and the sellers invest those proceeds into stocks raising prices. When the Fed stops or even threatens to stop, the whole trade begins unraveling. While the Fed claims to be concerned with unemployment and inflation, the Fed is extremely apprehensive about the consequences of a falling stock market. Going forward, the Fed will continue to use low inflation and poor labor market data to justify continued printing to support both the government bond and stock markets.
The Eurozone and the MFP is really counting on PIIGS exports continuing their rise in order to support the Eurocrisis Recovery Narrative. Unfortunately, a rising euro will stop the export “boom” in its tracks. The Euro will continue to rise as the Fed continues to print. Moreover, Eurozone banks are still selling overseas assets to bolster capital ratios back home. This process has created background buying pressure on the euro that may even pick up as these backs clean up their balance sheets in advance of the commencement of the “banking union” in late 2014.
This article is typical of the drivel spewing from the mouth of the MSM. People report increasing job satisfaction after 50 because of some rather obvious selection bias. People switch jobs several times over the course of their careers. If your job sucks, you quit it in the hopes that the next job will be better. This process will continue until you find a job that you enjoy. Then, you will stay with it as long as you can. It is not surprising that people settle into a comfort zone with their employment when they reach the last stages of their careers. So the article’s advice to sit around and “just wait” until you’re 50 is poor advice. It takes a lot of work to obtain satisfying work, so get to work already!