The better we feel, the better the economy will be. That’s the real economic law, and it’s not even economics, it’s psychology! Yes, this economy is getting better, and the real estate market is improving, but not as quickly or as much as the Dow would have you believe. But, because confidence is being restored, everything looks better. I’m reminded of this by the large jump in pending sales announced on June 1 by NAR. That as much as anything we see is both a symptom of a rising housing market as a symbol of the confidence we now have that things are getting better. To a great extent, this is due to the moves made by the Obma administration. Oh, I don’t know if they’ll all work, and like many of you I disagree with a few of them, but simply taking action has galvanize the American people and given them the confidence that there is a better future nearby. Obama replacing Bush is like Roosevelt replacing Hoover. An active, bold administration taking over for one that had grown tired, lost its bearings and was making our problems worse. So now that we think things are turning, we place more emphasis on the good news–pending sales, the stock market, the consumer confidence index–and worry less about GM, job losses and the value of the dollar. And that’s a good thing for the economy.