Cardiff Garcia from FT Alphaville and Bloomberg's Nela Richardson join Lizzie O'Leary to look back at the week's business news and forward at where the economy is going.
Housing prices have picked back up and the stock market is as strong as ever, but long-term unemployment, worsening income inequality and stagnant wages still affect the rest of the country. Will that continue?
"If you're a prospective home-buyer, it's not great news because prices are higher. On the other hand, if you're already a home-owner, and for instance, you're an underwater home owner, it's good news, it means you have a little bit more wealth," Garcia says. "I think it's more important to follow actual housing construction activity, which remains kind of mixed and uncertain because thats much more important for the broader economy."
"No one is buying houses anymore," Richardson says. "If you look at purchase applications, it's been flat for several years. All this bump up on price is based on very few transactions. And remember when the builders looked at prices five years ago, that's what fed the housing boom. They were responding to prices and not actual demand."
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