How are Home Values Subject to Mass Media?

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I have noticed over the last forty years (in the construction /real estate industry) that mass media has the effect of stimulating sales. If the interest rates go up and the news reports it sales go up. The same thing happens if interest rates go down. Just recently home values stopped dropping, and network media managed to fit a short blurb for a day, lo and behold sales went up. Maybe if mass media really focused on the construction/real estate industry for a few weeks they could push the economy into a major upturn.

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U.S. house prices rose 0.8 percent in April from the previous month, the third straight advance, as the property market shows signs of stabilization, the Federal Housing Finance Agency said.

The increase beat the 0.4 percent gain that was the average estimate of 19 analysts in a Bloomberg survey. Prices jumped 3 percent from a year earlier, the FHFA said in a statement today.

http://www.bloomberg.com/news/2012-06-2 ... -says.html

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It is a historical fact that the US$ is based on land, and not publicly held land, privately held land. The economy is defined by Gross Domestic Product. The business cycle is based on agriculture, that is as the portion of GDP that is related to agricultural export expands so does the cash in the system of planting, growing, and shipping.

In the late 18th century and early 19th the Unites States Federal Government subdivided and sold land as a means to manage debt. After the civil war the homestead act gave applicants ownership to no cost farm land. These policies are the basis of the federal system we have today. The funding structure is different for the federal government, but the basic economy of the United States in land especially agricultural land with water on it.

Kansas has one of the lowest unemployment rates in the county. One of the reasons for this is wheat. The value of the harvest has been rising steadily even as the number of planted acres has dropped.



Right now even though the government says it supports a strong dollar, a weak dollar is better for exporting revenues especially wheat. Although the entire Kansas spring wheat harvest is not exported, the total Kansas harvest is equal to the total US wheat export.

As the economies of the nations of the world improve they strive to eat better, and they can afford to buy U.S. food.

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