Economy 101

I really need a lesson in basic Economics, although I’m not sure anything makes sense these days – at least not according to the “rules”.  I fail to understand how stocks can be higher when these are the headlines of the day.

Home Prices in U.S. Fell Record 4.5% in Third Quarter

Consumer Confidence Lowest Since Katrina

How Low Will Housing Market Go? Much Lower, Say Experts

Mortgage Crisis Raises Recession Fears

UPDATE: Stocks were higher because the Abu Dhabi Investment Authority is pumping 7.5 billion dollars into Citigroup.  I’m still not convinced that’s bigger than the combined impact of the events linked above.  That’s why I’m not in financne, I guess.