US New Home Sales Drop…a long way from a strong economy

I think it was last week that the market rose because sales of existing homes significantly increased so there were thoughts around an economy looking better. Unfortunately, overnight the latest report regarding new home sales was that of a fall. Guess what? New homes is a far stronger indicator of the strength of an economy than existing homes…the US is a long way away from a strong looking economy. With unemployment still enormous and monetary policy at the end of its limits (i.e. the nil interest bound), banks like Citi struggling, perhaps another US stimulus package is needed???