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Comment by anoncowherd | Hacker News Reader

> the real estate market showed signs of long-term strength and we started our current development drive.

It's not long-term strength, by the way. The US economy[1] is in shambles, and ready to implode any moment. What you're seeing in the real estate market is a new bubble. The buyers are investors, and the current craze started when people thought the bottom was in. The zero-interest rate policy "helps" too.

Just thought you might want to know. Be careful.

[1] Not only the US, but pretty much all Western economies (+Japan) are ready to implode.

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Sigh, I'll bite. Tired of cable news quality comments presenting very debatable opinions as fact, especially without any concrete arguments, evidence, sources or otherwise real facts. On top of that being tangential to the post. Here is just one indicator that points in the opposite direction of your claims.

http://data.bls.gov/timeseries/LNS14000000

GDP revised down dramatically in Q1. Q2 revised up to 2.5% on inventory growth and export growth very one-offish events. Q2 consumption part of GDP lower that Q1. With Fed induced spike in interest rates, mortgage apps are way down and housing sales figures are cooling fast. Emerging market currencies are being routed. Europe continues to languish. Employment is a lagging indicator.

The U6 unemployment rate is more indicative of the current state of the economy: http://research.stlouisfed.org/fred2/series/U6RATE

> It's not long-term strength, by the way. The US economy[1] is in shambles, and ready to implode any moment.

So that's my gut feel as well, but I don't have a good handle on the economic & market information as to why that might be so. Can you expand?

> So that's my gut feel as well, but I don't have a good handle on the economic & market information as to why that might be so.

Welcome to Reality. The mainstream media is just misleading / propagandizing you - if you want the truth, you'll have to turn to "alternative" sources.

> Can you expand?

Peter can: http://www.youtube.com/watch?feature=player_detailpage&v=Rpf...

Here's another good source: http://globaleconomicanalysis.blogspot.com/

Wouldn't go as far to say as the US will implode, but Fed QE has greatly distorted financial and real estate markets. The Fed has pumped over $3 trillion into the bond markets since the financial crisis and are currently buying at a pace of $1.02 trillion per year. Since the US govt has never done this before, no one knows the consequences of these actions. There are dissenters within the Fed itself over QE, notably Fisher, and he has recently talked about this, um, predicament. http://www.dallasfed.org/news/speeches/fisher/2013/fs130805....

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