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... :)))