Supply-Side Economics

[finnbow]

Originally Posted by whell

[I]Existing home sales, which account for about 90 percent of U.S. home sales, declined 4.8 percent on a year-on-year basis in January. That was the biggest year-on-year drop since August 2014. The weakness in home sales is largely a function of supply constraints rather than a lack of demand, which is being driven by a robust labor market.

Reduced supply and higher interest rates seem like a double-whammy to me, yet more evidence that the huge tax cuts were ill-timed and will give with one hand and take with the other (through higher mortgage interest payments). On top of that, we have Trump's idiotic tariffs likely to increase the price of all sorts of consumer goods. You know as little about economics as your beloved Dotard.