Posted by howard in nyc
support for the housing market is the stated number one target for the government in their attempts to save the economy. literal trillions of dollars have been thrown at preserving the housing bubble. and there have been no shortage of recent crowing about how the housing market has stabilized.
wrong. fail. massive fail.
U.S. Economy: New-Home Sales Unexpectedly Fall to Record Low
By Bob Willis
Feb. 24 (Bloomberg) -- Sales of new homes in the U.S. unexpectedly fell in January to the lowest level on record, a sign that an extension of a government tax credit may not be enough to rekindle demand.
Purchases declined 11 percent to an annual pace of 309,000, below the lowest forecast in a Bloomberg News survey of economists, figures from the Commerce Department showed today in Washington. The median sales price dropped 2.4 percent from January 2009 and the supply of unsold homes increased.
there is no recovery. we remain in a depression. i am trying to hold back from daily posting of evidence of this truth. least you think i am cherry picking data to sell my book, peep this long term representation, and judge for yourself (from calculated risk, mish. NSA = non-seasonally adjusted:
using trillions of dollars of borrowed money to try to prevent housing prices from falling was unfair (favoring those who hold mortgages over those who would buy houses at the lower prices), and doomed to fail. not only was this loudly predicted, it is obvious to anyone with a cursory understanding of simple arithmetic, or of the history of government failed attempts to control markets. and we are stuck with the debt, and with the unintended (but also predictable) consequences.
do not believe the garbage our leaders and our media is shoveling. unemployment and housing prices/supply are simple, clear tells. the second great depression is underway.
don't believe me. here is someone who knows much better than me. cause he's not only a client; he owns the whole thing!
Greenspan Says Crisis ‘By Far’ Worst, Recovery Uneven (Update1)
By Joshua Zumbrun
Feb. 23 (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan said the financial crisis was “by far” the worst in history and called the recovery from the global recession “extremely unbalanced.”
The world economy has undergone “by far the greatest financial crisis globally ever,” Greenspan said today in a speech to the Credit Union National Association’s Governmental Affairs Conference in Washington.
Greenspan said that while the economy was in worse shape in the Great Depression, the recent financial crisis was potentially more harmful than that in the 1930s because “never had short-term credit literally withdrawn.”
Greenspan said that the gross domestic product may recover to the level of previous peaks earlier this year, even though traditional drivers of growth such as housing starts and motor vehicles were “dead in the water.” He also said small businesses show few signs of improving because lenders are struggling with commercial real estate mortgages.
The “extremely unbalanced recovery” is being led by high- income consumers and large businesses that are benefiting from a recovery in stock prices, he said