The job openings data was released this morning and we found out that 9.2 million jobs were added!! But at the same time, we saw DECLINE in labor force participation in last month’s jobs report.
It seems something is broken. Likely numerous states still payment extraordinary unemployment benefits and this is preventing a surge in labor force participation.
So, why does The Fed keeps its foot on the accelerator pedal??
And really has never slowed much since The Great Recession and housing bubble burst?
Here is a chart of mortgage purchase application SA against jobs added and labor force participation. Mortgage purchase applications are falling despite a huge surge in job openings.
Ah, uncontrollable home price increases! Yes, housing is becoming unaffordable for those who are renting or just entering the housing market for the first time.
The Fed, on the one hand, is creating asset bubbles and the Biden Administration essentially paying people not to work, but then worries why more households are going along for the house price ride.
“Biden’s new dilemma: How to slash housing costs for low-income borrowers” Answer? Lower credit standards for low-income households for loans purchased by Fannie Mae and Freddie Mac.