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Two recession warning signs are here
With real wages going down, and home prices already sky high, don't see how the housing market continues to rise and with it housing construction. Also, with interest rates starting to go up, where does housing go? The Trump tax cuts have not exactly translated into growth in real wages and the middle class can't just eat the GDP growth rate.
https://money.cnn.com/2018/08/01/investing/markets-now-lindsey-piegza/index.html
Housing and rates are worrying some economists that a recession is looming.
"One of the biggest concerns is the housing market," said Lindsey Piegza, chief economist for Stifel, on CNNMoney's "Markets Now" live show Wednesday. "It's throwing up a very large red flag and suggests maybe this 4% growth we saw in the second quarter is not sustainable."
Home sales have declined in four of the past five months as housing prices have grown -- but paychecks have remained stagnant. Many people can't afford to buy homes, and those who can are taking on a lot of debt to get into them.
Piegza says that echoes what happened right before the Great Recession in 2008.
