It's interesting to me that this is down, although you must admit it is not a huge drop. I don't see it as enough to give us a double dip in itself. It could easily go back up with all of this kind of goodish news lately such as the"AP - Chart shows S and P/Case-Shiller Composite 20 Home Price Index for the past 13 months".
I wonder why this recent fall though? It is still up from its earlier lows. I mean, I guess that continued high and probably rising unemployment is the primary cause, right? And although I see it leveling off, it will still rise slightly for quite a few months more.
First, it's not the relatively "small" size of the drop that's significant, it's that this is the second drop in a row from already historically very low levels... and doing so after only a few months of rises... we really do not see this type of pattern outside of being in recession or setting up for a double dip
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"wage deflation" I actually had a student try to make the argument that our recession and unemployment can be blamed on the recent rise in the minimum wage and that "our government just does not understand that it needs to let the market decide on wages".
I don't disagree with your points, but most of them have been similar for a few months, so why did this index go down just recently though?
The index has slumped back down simply because after the initial euphoria of all the hype out of CNBC and Wall Street, the rest of us realize that the real world economy is actually still in the shitter, and while no longer in free fall, still getting worse.
Interesting point of view your student holds. Does he/she have Rush Limbaugh for a tutor?
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I wonder why this recent fall though? It is still up from its earlier lows. I mean, I guess that continued high and probably rising unemployment is the primary cause, right? And although I see it leveling off, it will still rise slightly for quite a few months more.
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I actually had a student try to make the argument that our recession and unemployment can be blamed on the recent rise in the minimum wage and that "our government just does not understand that it needs to let the market decide on wages".
I don't disagree with your points, but most of them have been similar for a few months, so why did this index go down just recently though?
No V, but instead an LJ recession : )
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Interesting point of view your student holds. Does he/she have Rush Limbaugh for a tutor?
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