I was avoiding work and gamboling about the web when I ran into this little gem of unreason on the CNN Money page.
“Existing home sales jumped to a record last month as persistent low mortgage rates helped keep the real estate market sizzling.”
“The real estate group [National Association of Realtors] said the strong sales are a sign the market is fundamentally strong, and not in a possible bubble.”
If home sales and the prices of homes were falling we would be in a bubble. But since sales and prices are rising we are not in a bubble. The standard definition of a bubble is, of course, falling prices and sales. Known to every financial anaylst. Yup. Yup. Yup.
The the intersection of the groups chief economist with reality can be gauged by:
“…David Lereah, the group’s chief economist, said in a statement. “When we look at recent job gains, we see all the positive factors coming together to coincide with a powerful demographic demand for housing.”
Not only are we not in a bubble the labor market is doing just great. Unemployment is falling, job creation is steaming ahead, and businesses are finding it hard to find workers to fill jobs.
The mind boggles.