Market rises on great news: U.S. Durable Goods Orders Fell 3.6%, and Home prices delined 5.5 % in April

Orders for U.S. durable goods dropped more than forecast in April, reflecting a slump in aircraft demand and disruptions in supplies of auto parts stemming from the earthquake in Japan.

The 3.6 percent decrease in bookings for goods meant to last at least three years was the biggest since October and followed a 4.4 percent surge in March that was larger than previously estimated, a Commerce Department report showed today in Washington. Economists projected a 2.5 percent April decline, according to the median forecast in a Bloomberg News survey.

“Manufacturing is likely to moderate from the explosive pace of growth in the past few months,” said Stephen Stanley chief economist at Pierpont Securities LLC. At the same time, “consumer demand and investment demand are both doing well right now,” he said.

The great news about the massive explosion of manufacturing growth here and all around the world is matched only by the tremendously good news in the housing industry:

U.S. home prices dropped 5.5 percent in the first quarter from a year earlier, the biggest decline in almost two years, as sales of discounted foreclosures undermined real estate values.

Prices fell 2.5 percent from the fourth quarter, the Washington-based Federal Housing Finance Agency said today in a report. Economists projected a 1.2 percent drop from the previous three months, according to the median of five estimates in a Bloomberg survey.

This great news was celebrated by the National Association of Realtors that noted: Home sales are expected to stay on an uptrend through 2012, although the performance will be uneven with mortgage constraints weighing on the market, according to experts at a residential real estate forum today at the Realtors® Midyear Legislative Meetings & Trade Expo here.

Hard to imagine how things could get any better. Hopefully tomorrow's GDP revisions will show a huge decline further indicating the current economic boom is accelerating.

Also MORE GOOD NEWS FROM THE EEC - There's no debt Crisis! As EU debt markets come under renewed pressure amid a broadening in the scope of downgrades to sovereign credit ratings, and ratings outlooks, we note commentary from the Union's Economic and Monetary Affairs Commissioner Olli Rehn :

... "We have contained the crisis to the three countries now in the EU-IMF programs. It is not correct to speak of a crisis of the euro or monetary union."

And GREECE is doing even better than we are! Our manufacturing only managed a 3./5 % decline, in Greece they scored with a double-digit decline in the year-year rate of Manufacturing Output, which plunged by (-) 10.3% during March, sliding from a (-) 6.8% yr-yr contraction in February, and the (-) 4.5% yr-yr decline seen in January. So if we're having a boom - they must be having a manufacturing explosion! Good for them.

If things go well enough maybe soon we'll be right up there with Greece. Things just keep getting better and better.