Punching Stupid and Evil in the Face Since 1986!

"We are on strike, we the men of the mind. We are on strike against self-immolation. We are on strike against the creed of unearned rewards and unrewarded duties."-John Galt

Wednesday, August 25, 2010

Total housing sales plummet to 42-year low despite rock-bottom rates and perpetual government bailouts.

Total housing sales hit a 42-year low in July. Sales dropped 27%; just one more indicator of a weak and faltering recovery. Interest rates are at a multi-year low, lending standards have been weakened to the point of becoming nearly non-existent, and the government continues to pump cash money into the housing economy like water to a lake. All of these wasteful, big government policies did nothing to stave this flood.

In the largest single monthly drop since 1968, the year such records began to be kept, the U.S. housing market plunged by 27% in July. The nosedive occurred in spite of the fact that mortgage rates are at historic lows.

The news headlines by mainstream media outlets, however, mask the depth of the crisis. Several misleading statements were made by not only the AP and NPR but the National Association of Realtors leading readers to believe that the July crash is merely the worse in 15 years.

Reading beyond the headlines to the second paragraph or beyond will reveal the actual dire picture. Sales of EXISTING homes are the worst in 15 years. But when sales of NEW homes are added to that figure, NAR admits that July is the worst month since 1968.

Combine this, with the recent record high unemployment claims of 500,000, a shaky stock market, slow economic growth and Americans increasingly investing in precious metals, like gold and silver, it is no wonder that Gluskin Sheff economist David Rosenberg said Tuesday The US economy is in a 1930s-style Depression. In a hostile growth/business environment, such as the one fermenting on Capitol Hill, it is of no surprise that no one is spending, no one is buying, no one is hiring-is it? When will the Pelosi/Reid/Obama cabal get that their "pass-it-to-know-what's-in-it" way of governing is what is causing the malaise and general economic discontent of today. Why would I make any major move when the future is so uncertain and their policies are so likely to attack me for being successful?

Well that and all the redistribution of your stuff to others. That's doing it to.