Uninformed Economics Commentary
Tuesday, July 29, 2008
The Dow Jones Industrial Average is up almost 200 points. The official reason for this rally is that oil prices have dropped almost 3 dollars today. With oil now only at 120 dollars (!), the economy is in better shape. Buy Stock!But if oil hadn't stolen the news, the headline would be this housing report.
Bad news
An index of major cities has found that American house values fell off 16 percent - in May! That's the worst decline in the history of recording house values.
This rally on the stock market is superficial, then.