A FEW THOUGHTS

This brief newsletter can hardly accommodate the many subjects that could be discussed. Here is a brief look at some other points to ponder. A recent article mentioned on CNBC has Zillow’s economist worried about housing affordability. Something to watch is how quickly the housing prices are rising compared with wages. This newsletter has addressed the same concerns in previous months. What is keeping home buying in the game plan for most is the historically low interest rates. The Fed announced they could likely stick around until 2016, which coincides with pre recession employment gains. A recent article by Jonathan Lansner (April 10, 2013), economist for the Register newspaper, was asking where inflation is? It appears to be MIA. Gas topping the list, durable goods, food, all seem under control. If we mix the economic cocktail correctly, perhaps job growth will spur wages, before interest rates rise, and when inflation does return, the consumer’s purchasing power will be status quo. There is always room for optimism, even in economics.