The Case-Shiller index today reported a further erosion in home values, which put more pressure on the U.S. economy. In addition to a drop in the major asset of most U.S. households, the CHICAGO PMI came in much weaker than expected as consumer confidence showed renewed weakness. Even with record low interest rates, the U.S. housing market cannot find any support for prices. As I have argued for years, if employment stays weak then housing will struggle … and so it goes.