Posted by: Michael Mandel on May 05
Angry Bear observes, quite correctly,
that the non-service portion of the US economy has slowly been evolving from a goods-producing economy into a house-producing economy.
In the same vein, Brad Setser discusses the implications of the U.S. becoming an economy “specializing in the production of houses.”
In terms of my own views, I’m gradually coming to the belief that the long period of low interest rates, which has helped housing, has hurt rate-insensitive sectors such as technology. Low rates help construction workers, not engineers and programmers.
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