Aug 3, 2009
“Home prices rise,” “Economy recovering,” “Growth in GDP,” the media trumpeted at the end of July. They pushed the idea that the recession was easing.
The bosses’ recession may have ended, but unemployment, foreclosures and houses for sale remain at the highest levels since the great depression of the 1930s.
When we check the fine print, it turns out that housing sales are still falling, just not as fast as they did in the previous three months.
Here is how Dean Baker, an economist at the Center for Economic and Policy Research, put it: “There are enormous inventories of unsold housing.... High unemployment and underwater mortgages will keep foreclosures at close to an annual rate of two million.... There is no sector of the economy that will provide any substantial boost to the economy.”
The bosses’ recovery is no recovery for the vast majority.