Morons, Optimists and Shills get surprised at economic bad news

Who are these people who continually get surprised with bad news?  Many of them are experts, who look at the current economic numbers, but can't look beyond the basic figures.  Others are the hope and change crown that are rooting for Obama today because they have invested in him politically.  But others are just old fashioned optimists.  We here are optimistic about America's long term success, but not to the point of ignoring some of the structural problems inherent in our economy.

We have been calling for continued falling of housing and it hasn't finished yet. Via CNBC:
"It seems that almost every bit of data about the health of the US economy has disappointed expectations recently," said Riddell, in a note sent to CNBC on Wednesday.

"US house prices have fallen by more than 5 percent year on year, pending home sales have collapsed and existing home sales disappointed, the trend of improving jobless claims has arrested, first quarter GDP wasn’t revised upwards by the 0.4 percent forecast, durables goods orders shrank, manufacturing surveys from Philadelphia Fed, Richmond Fed and Chicago Fed were all very disappointing."

"And that’s just in the last week and a bit," said Riddell.

Pointing to the dramatic turnaround in the Citigroup "Economic Surprise Index" for the United States, Riddell said the tumble in a matter of months to negative from positive is almost as bad as the situation before the collapse of Lehman Brothers in 2008.
Most people, and especially the hope and change crowd, are cheering this economy.  I am too, but I just haven't seen anything to cheer about.  Housing should still go down another 10% or more.  When the interest rates increase, expect another 20% drop.  If interest rates go way up, expect a 50% real drop in housing values.  

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