Housing Shows There Is No Recovery

[traelin0]

Housing starts are a tried and true barometer of business activity. If there was a real economic recovery going on, housing starts would be, at the very least, edging up. Please keep in mind the government is providing some of the lowest mortgage rates in a generation. A 30-year mortgage is around 4.75%. This week, the Commerce Department reported housing starts were down 4.3% last month. Here’s how this was couched in the opening line of a Bloomberg story: “Builders began work on fewer homes than projected in December, a sign the industry that triggered the recession continued to struggle more than a year into the U.S. economic recovery.” (Click here to read the complete Bloomberg story.)

“More than a year into the U.S. economic recovery.” What recovery? I feel Bloomberg does a better job than most reporting the financial news, but I cannot figure out why nearly all reporters universally keep beating the “recovery”drum when there is no actual proof of a sustained recovery. The same Bloomberg story quoted above backs up my contention. It said, “Boston Fed President Eric Rosengren is among central bankers concerned growth won’t exceed 4 percent this year because the housing recovery is likely to be weaker than usual, given the tightening of lending standards and high vacancy rates. “If housing-related growth is not going to boost the recovery this time around, we may need policy — particularly monetary policy — to continue playing a stimulative role,” Rosengren said in a Jan. 14 speech.”

But surely, Immelt will fix everything? Who said Obama wasn't a fascist, LOL. The marriage of corporation and state...

Read more here.

[BeenThere...DoneThat...]

...while these figures are interesting, I think the grocery sector would be a better barometer... we can always try to shack up together to combine resources... but we can only economize so much in our food intake...

[stayput]

Jan 21, 2011 23:51:27 GMT -5 BeenThere...DoneThat... said:

...while these figures are interesting, I think the grocery sector would be a better barometer... we can always try to shack up together to combine resources... but we can only economize so much in our food intake...

Here in lies the problem with this scenario. If we do start "shacking up together", even more mouths will need to be fed. I mean let's face it. If I have to have anyone shacking up with me, it's not going to be some guy, or fat ugly woman. ;D

[Deleted]

If there was a real economic recovery going on, housing starts would be, at the very least, edging up.

That used to be a huge indicator. I'm not sure that it's valid with so many empty houses on the market. I would think that is a lot of areas there is to much empty housing & builders wouldn't want to try to compete with them. Of course it depends on the area. It also depends on people being able to get loans to buy houses.

[handyman2]

People are finding it tough to get financing for a home. the banks are playing close to the vest.

[fairlycrazy23]

The supply for houses was dramatically increased do to government intervention, so there is already a large supply of houses that nobody wants at current prices.