Federal Reserve stimulus has buoyed home and stock prices, but that won't generate as much an economic bounce as wealth gains once did, according to a recent study.
The financial crisis eroded the so-called wealth effect that Americans feel from rising property and stock values, producing a weaker spending boost, said Credit Suisse analysts Neal Soss and Henry Mo.
That makes the 7% yearly increase in the Case-Shiller home price index and the near-record high of the Dow Jones industrial average less encouraging.
Source: Investors Business Daily. Read full article. (link)