The Reality Check

There was a story on CNN Money today about the record sales in existing homes in July and how economists were saying it signaled a recovering in the market. I think CNN forgot about the fact that last week they posted a story of the record number of foreclosure filings in the same month. In today's article, CNN neglected to mention last week's story and how the record number of homes sales might be correlated to the record number of foreclosures in July. If the number of homes sales was due to below market prices from foreclosures, I'm not sure that you could say that's a signal of economic strength. There are a lot of economic losses from a foreclosure sale.