If the middle class has been deciimated, who's buying all the stuff?

[cali]

Maybe that's a dumb question and I freely admit I don't know much about economics, but seriously who's buying all the stuff? I'm not just talking about iphones and gadgets and clothes, but the housing market is seriously up.

Is the economy improving? Is it getting worse? Is the middle class in a national emergency? I do know that the gap between rich and poor is unconscionable but beyond that, I'm economically baffled.

New-home sales rise fastest in 47 years
By Chavon Sutton, staff reporterApril 23, 2010: 3:36 PM ET


NEW YORK (CNNMoney.com) -- New home sales improved in March at the fastest single-month rate in 47 years, according to a government report released Friday, as buyers snatched up properties ahead of the tax credit that's set to expire.

New-home sales rose 26.9% to a seasonally adjusted annual rate of 411,000 last month, compared to an upwardly revised annual rate of 324,000 in February, the Census Bureau said. The gain snapped a four-month streak of declines.

A consensus of economists surveyed by Briefing.com expected March sales to rise to an annual rate of 330,000.

The March sales were the strongest since last July, and the percentage gain was the biggest on a month-over-month basis since a 31% gain in March 1963.

http://money.cnn.com/2010/04/23/news/economy/new_home_sales/

[Autumn Colors]

1. Foreigners looking for bargain real estate? (nt)

[cali]

2. nah, that wouldn't account for this kind of rise in the market

and the story mentions tax credits.

[dalaigh lllama]

3. Yeah, but I wonder if they're starting the same sh*t all over again

I saw an ad on tv at lunchtime to buy a condo "for $1000 down!" and I thought :wtf:

[CreekDog]

4. Even in bad times, there's plenty of people working and saving money

and when the prices of big ticket items go down, these folks move from the sidelines and start buying.

since i'm lucky enough to be working, i've spent money on trips, clothes, miscellaneous stuff, etc.

the middle class is definitely taking its hits but there are still many left, and besides, they aren't the only class that buys and has an impact with their buying.

[Odin2005]

5. People racking up credit card debt.

[bbinacan]

6. I heard somewhere that

credit card debt was falling.

[divvy]

11. You heard right. The consumer is de-levergaging.

I paid off all my debts too. I just have the routine bills coming in right now.

[bbinacan]

14. I did as well.

Feels good doesn't it?:toast:

[KittyWampus]

7. People who were able to save some and held off are taking advantage of a Buyer's Market

Not EVERYONE lost their jobs. Not EVERYONE is in credit card debt.

[Whisp]

8. the top 1 percenters don't have to sell products or services anymore

when they make their money just by transferring funds around the world -why would they be encouraged to invest in property, development, real estate, etc. , when you can profit far more just by playing a craps game with other billionaires.

[divvy]

9. The broad economy is getting pretty strong.

Unemployment may be between 9 and 10 percent but 90 percent still have jobs. Many people suffer from "recency bias" which makes people feel like what just happened will continue forever.

[Dr.Phool]

10. Prices are still plummeting in Florida.

[cali]

12. home prices?

here in VT, the housing market never really took a beating, and it really does look like things are improving. IBM just announced that they're adding a 100 jobs and Dealer.com announced they're adding 300+.

[Naturalist111]

13. Middle Class that are now Lower Class but haven't realized it yet.

:-)