Yellen Can’t Get off The Drug of Zero Interest Rates
“Think about it like a drug addict, if they’re recovering and they’ve been on methadone for seven years, just like the Fed’s been on zero interest rate policy for seven years–yet you’re still concerned that by getting off of that methadone that you’re going to have a relapse, there’s bigger problems ahead of us.”
The pace of home sales slowed sharply last month, falling 4.8% from July to a seasonally adjusted rate of 5.31 million. The National Association of Realtors says that was the largest month-to-month decline since January, when sales fell 4.9%. Still, from a year ago, home sales were up 6.2%. But virtually every so called “expert” thought housing would rise in August.
The Collingwood Group Chairman Tim Rood dissected the numbers for Fox Business’ Neil Cavuto and how a Fed rate hike will effect the industry: