The Keystone Speculator's Housing Market Indicator; United States Enters Double-Dip Housing Recession on 7/17/26

You were warned a month or so ago, here is the prior article when the housing recovery was hanging on by its fingernails, but alas, it falls off the cliff again. The United States started a housing recovery in February of this year ending the long over 3-year housing recession that no one noticed. The housing recovery, however, only ran for 5 months and it ended yesterday ushering in a double-dip housing recession.

In years gone by, manufacturing, housing and labor recessions, all were occurring over the last couple years or so, would guarantee an overall economic recession for America. Not anymore. Tech and AI runs the show now and the obscene spending and expansion of this fledgling, yet to be proven, technology stops the country from slipping into overall recession. Also, the wealth effect felt by America's privileged elite, that raped the financial system for all its worth over the last few decades, with the help of the Fed's money-printing, is fueling consumer spending that also keeps the overall recession bear at bay.

Thus, mathematicians say thus and therefore a lot, that is why Keystone was not invited to the Amvets party and fireworks show on July 4th, the last couple years were a battle between the manufacturing, housing and labor recessions against consumer spending (by the rich that control the crony capitalism system) and AI revolution. The consumer spending fueled by the wealth effect (the rich see their stocks going to the moon and keep asking why everyone is so glum) and AI hype staves off the overall recession for the US but how long will this occur?

Half the country does not own a single share of stock so the easy money games, and gains, over the years purely enriched the wealthy class effortlessly while the common American was hosed. No wonder why tens of millions of Americans no longer give a sh*t and social unrest increases with each passing week. There is no American Dream since the game is rigged by the wealthy class. Common folks no longer have any skin in the game and no longer expect their lives, or their children's lives, to be better. The wealthy class skinned the poor, and the middle class that no longer exists. The US is a faux free market crony capitalism system with 30 million privileged elite and upper class sycophants, that service the elite, at the top and 300 million peons at the bottom. Once you accept the fact that capitalism does not exist, it will all make sense to you.

So here we are with a new housing recession period beginning. The reason the news is bad is because inflation is on the rise at the same time. Trumpflation, due to King Donnie's tariffs and Iran War, remains elevated and floating higher and can only be stopped with higher rates. However, that would be a disaster to raise rates now with the housing sector slipping back into a double-dip recession. A hike in rates would completely crush the housing market and send the US into an overall recession, finally.

Fed Chairman Warsh, with the perfect hair, will probably leave rates as is on 7/29/26 and punt until the next meeting. Warsh has helmet hair like Bobby Goldsboro. Warsh is actually bald and his hair is a plastic mold. He picks it up off the Styrofoam head on the nightstand each morning and places it on his bald noggin. That is why every hair is in its place; it is a plastic mold. Most of you young folks do not know Bobby Goldsboro. He was a famous singer decades back and had hair that looked like someone cut it with a bowl on his head. His nickname was Helmet Head and Helmet Hair and he took it all in stride as good fun. Honey was his classic song. Lots of folks would cry when he sang Honey since everyone in life loses loved ones. Now that the housing recession is back, and an overall recession may be on the come, everyone will soon be crying.