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Madonna is at a five year high and the case Shiller home price index posted its largest annual gain in seven years in March.
So as this US recovery finally found -- -- joining us now Phillips wiggle former assistant secretary for economic policy at the Treasury Department.
Stands at University of Maryland.
Sir -- telling his students about this because look back when I was a student I -- fundamental announces.
Cummings made mining stocks went up.
How do you explain this then other then.
Yeah I know it -- partly sunny but it's also partly that the economic recovery is finally kicking and we finally -- consumers -- -- I'm more confident.
If -- -- and more confident about the job situation.
So that's that's really heartening for students so that's what it's about then isn't it at the end of the day it's about jobs you know because a lot of you appoint to the housing market.
Home prices trending higher -- president trending higher because well.
People are confident in their jobs right there wanna get out there and bit him up a little bit.
He had a -- -- -- in many dimensions as he goes home prices going up.
And also the inventory of homes for sale in -- for -- you're going down and then by the same token stocks are up some people feel richer.
Both in their homes.
You know in the stock accounts and -- that translates into spending -- job creation this for a long time we had a big dichotomy between main street and Wall Street right.
We had main street just suffering while Wall Street out they had traders drilling has making money -- our for a long -- in the toilet so.
Are we gonna eventually all come together on this or is this just an entirely different world and the separation might -- here -- -- Well I think we're finally coming together -- the recovery it's not strong -- not back to a bubble.
But it's finally going strong enough that I think Americans consensus.
Is sensitive job prospects are better and again they see in their home and then there there stock portfolio so there is finally some convergence is not just Wall Street.
What do we need and to keep this going.
We need corporations to start investing and we we you know technologies -- -- humans in many many ways so.
There is at potential jobs shortage in some industries.
What has happened.
It it's hard because we have taken we have companies have been seeing a lot of cash.
And then when they do -- is like you said.
There's lots of technology that -- displaces workers but the good news is that it makes workers who still have jobs more productive hitting -- of this as a signal to people.
But they need to get better education better training better skills and especially high tech skills.
So that -- the shift we've been seeing towards technology has displaced people.
But ultimately I think it makes us richer.
You know for a while politics was moving the market Washington was in control of the stock market and and there's so much bloody chaos going on in Washington right now and the market's totally ignoring it are we done with Washington -- six.
No you know what -- -- -- a bit of a hiatus from the summer's going to be quiet and then in the fall.
We go back the debt ceiling back to the discussions in the arguments over tax policy.
So I hadn't market -- tune that out forbid hopefully they'll be some resolution before things get really bad again.
But I think that -- isn't -- -- risk you know the noise from here in Washington Avila did you have a little over and it really quickly.
European Union is still out there and we stopped talking about it but to your point it could just be a hiatus straight.
That's right mean and they've they've got things under control a little bit but they haven't really solve the problems and that's a risk for us it sure is -- with a thank you for taking the time Venus.
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