The Debt Free Guys’ weekly Money Conscious Mash Up, like Celine Dion’s heart, goes on even though you’re at church for the first time since 1979. It’s all good, though. You can watch or read it later. Like your soul, the internet is forever.
Speaking of souls, life’s ironic if nothing else. In the same week The Pope’s in town, we’re presented with a dichotomy of souls. One attempted to raise the price of a life-saving drug by 5,000 percent. Another fed a man in need. Which one is rich?
The general answers to that question this week is new stuff. The National Association of Realtors released its August Existing Home Sales on Tuesday and the trifecta of government data (the Census Bureau, Commerce Department and Department of Housing and Urban Development (a.k.a. HUD)) released their August New Homes Sales on Thursday.
American’s have chosen and decided older homes suck! Existing home sales came in lower than the downwardly revised July numbers and at the lowest since April. Year-over-year existing home sales growth is now 6.2 percent. New home sales saw its fastest pace of growth in seven years, after July’s 12 percent increase. New home sales year-over-year growth is now 12 percent.
Speaking of dichotomies, Kanye pronounced his love of Ben Carson this week. Just as important and on the same day, Janet Yellen pronounced that the seven-year eminent rate hike will eminently happen this year. The Fed’s preferred gauge of inflation has remained under the Fed’s preferred rate of 2 percent since 2008. The Fed’s continued low interest rate policy continues to hurt savers, usually older and elderlier. Like American home buyers, Yellin’ Yellen must hate old stuff.
Today’s caveat, usually when I misspell or misspeak, it’s intentional for laughs. Which is altogether different from not knowing that Auschwitz is not a comedic inspiration for phallic jokes. I mean, I do have spell-check. Facebook should create a stupid comment check.
Moving along, on Friday, the Commerce Department released its third and mostly final second quarter Gross Domestic Product estimate, which came in at 3.9 percent, 0.2 percent higher than the previous estimate and well over first quarter’s 0.6 percent. The revision was due to a larger pickup in consumer spending than consumers can well afford and business investment and commercial and residential construction.
As with everything, the dichotomy between good and bad remains. Despite the EPA’s attempt to prop up the economy by buying $800 pencil holders, the Atlanta Fed’s GDP model shows third quarter GDP currently running at a measly 1.4 percent clip.
Lastly and also on Friday, the University of Michigan released its final September Consumer Sentiment reading, which came in at 87.2, over August’s 85.7. Both the future expectations and current conditions components increased since the mid-September reading. This is the first expectations component increase of any index in our rearview mirror. Kinda makes us want to have a cry with Johnny Boehner.
Unlike most, we’re concerned about the housing market because the headline unemployment figures, per Bernie Sanders, aren’t accurate and wages, though up for the near-term, remain flat for the long-term. We think most Americans would do well to save their money rather than upgrade their home. Consumers are spending more money than ever on part-time, ownerless stuff, including homes, phones and cars. Boehner’s resignation could bring about a tenuous debt ceiling fight this fall and there’s a global economic slowdown that’s helped create a volatile stock market.
How should you respond to all this nonsense? Pay off all debt fast. Like banks and businesses, hoard cash. They’re hoarding for a reason. Simplify your life. Don’t lower your quality of life. As our friend Adam Carroll says, “Build a bigger life, not a bigger lifestyle.”
That’s this week’s Money Conscious Mash Up brought to you by 4: The Four Principles of a Debt Free Life. Get your copy on Amazon or Barnes & Noble today. Come back every Sunday for our bombdiggity take on otherwise boring numbers and barometers. If you like our Money Conscious Mash Up, please remember to share it and show the love in the comment section below.
Thanks and have a great week.