For the second straight month, home sales have increased:

There was another ray of hope Monday for the distressed housing market: the National Association of Realtors said the volume of signed contracts to buy previously occupied homes rose for the second month in a row.

Homebuyers taking advantage of bargain prices, low interest rates and a tax credit for first-time buyers pushed the seasonally adjusted index of pending sales up by 3.2 percent to 84.6 in March.

What if the economy is recovering? What if it all happens before the gazillions of dollars Obama is spending happens.

John Fund told me to expect inflation 18 months from now. When the natural capitalistic cycle is monkeyed with the pendulum swings too far the other direction. That's what I fear happening in the next two years.

UPDATED: Related thoughts from Lorie Byrd.

Cross-posted at MelissaClouthier.com