Construction spending drop - Government statistics is helping FED to help the Government...

 

It is not so unexpected that US construction spending has dropped. Generally the real estate sector crisis is far from closing, so such types of news must be always expected. But there is a reason more to expect this news and some other similar news in near future. The reason is that Bernanke needs such numbers to argue the start of QE3. With China and other global investors going out of US securities, the only way to finance the deficit is the debt to be bought by FED. For doing the QE3, Bernanke needs "facts" that prove hit thesis that economy recovery is unstable and vulnerable. So in fact it will be unexpected if such facts do not appear... Government statistics is helping FED to help the Government... :)))

Dobri

 

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