Coyote Blog | Warren Meyere | In Praise of Divided GovernmentSomewhere around here I've got a prospectus for a fund which stays in money-market-mode most of the time, and moves into equities whenever congress goes out of session. They claim some pretty impressive results.
I must say that I am not much of a fan of trying to find spurious relationships between long-term economic trends and the political parties who hold office at various times. But I must say I kind of liked this one from Mark Perry:
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Coyote Blog | Warren Meyere | I Sense a Pattern HereThis is the multi-billion dollar equivalent of a kid pusshing his peas all around the plate so it looks like he ate more of them.
Here is a chart I ran a while back on auto sales, showing how the cash for clunkers “stimulus” program simply spent a bunch of money to pull forward car sales by a month or two
Here are housing sales — I don’t have time this morning to annotate the chart but the housing stimulus program expired in May
By the way:
EconLog | Arnold Kling | A Consensus to QuestionFor every house buyer there's a house seller. Pretty much everyone will be both at different times; in fact most people are both at the very same time, give or take a few weeks. Lower prices scare people when they're in their "I'm a seller" mode, but they forget that it's good news for them in their "I'm a buyer" mode. There is nothing inherently better about home prices being considered high, unless you place more value on older generation than younger ones. That sounds silly, but that's the way a lot of other policies in this country are set, so I find it pretty convincing.
Old consensus: we need Freddie and Fannie in order to make housing "affordable."
New consensus: we need them in order to "prevent further house price declines," in other words, to make housing less affordable.
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Addendum — Daniel Invoglio, creator of the housing chart above, also posted a copy with the vertical axis set to zero, as I prefer. You can find that here. Here is a version with data going back to 1999. The extra context makes the extremity of July's numbers even clearer.