Ouch...This is going to leave a mark:
"WASHINGTON (Reuters) - Sales of previously owned U.S. homes dropped more steeply than expected in July to their lowest pace in 15 years, an industry group said on Tuesday, implying further loss of momentum in the economic recovery.
The National Association of Realtors said sales dropped a record 27.2 percent from June to an annual rate of 3.83 million units, the lowest level since May 1995. June's sales pace was revised down to a 5.26 million-unit pace.
Analysts polled by Reuters expected existing home sales to tumble 12 percent to a 4.70 million-unit pace from the previously reported 5.37 million units in June."
I had heard a whisper number of -20% but I never could have imagined a number this bad.
So Let me get this straight: We are now seeing the largest drops in home sales in 15 years at a time when rates are at an all time low?
Mr. Bernanke: Wasn't lower rates supposed to stimulate borrowing?
There were also reports today that there is increasing dissension at the Fed about what direction the central bank needs to take moving forward.
As you can see above, the zero interest rates policy has been a catastrophic failure. The only zero interest rate winners are the banks. I know shocker right? The biggest losers as a result of this policy are the prudent savers who are unable to earn any yield.
Is this how America works now? Reward the criminals who destroyed the financial system at the expense of the people who have fiscally done the right thing?
It's time for a change America and I suggest you make your voice heard during the elections in November.
More later today.