The US Economy In One Tweet

This tweet from Stephanie Kelton, an economics professor at the University of Missouri–Kansas City, is almost too perfect.

There's quite a lot there.

First, there's the fact that nobody in the real world seems to think that sequestration is a big deal.

Beyond that, the idea of austerity vs. housing is great frame by which to debate the economy.

For the moment, it seems like the tailwind from real estate (both in terms of construction jobs and the rising wealth effect) is solid enough such that the modest austerity from the sequestration won't put the US into recession.

As for where the housing market is at right now, see this great update from Calculated Risk >