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Thursday, December 23, 2010

HOORAY! THE ECONOMY HASN'T RECOVERED!!!11!

It is tiresome sometimes, hearing the MSM try to blow enough smoke to reinflate an economy obviously still very deep in a deflationary cycle. Today on at least three occasions (and that's just when I was listening) I heard the radio news on two different channels say how "new home sales were up in November" like it was all kinds of good news. Sure enough, the devil is in the details. Guess what, folks? That's the "we fudged the numbers" number. You want the real number?

A record low of 21,000. They are trumpeting "seasonally-adjusted" numbers being up 5% and the actual sales number is DOWN TO A NEW RECORD LOW. Plus, prices were down!

Now, for those who have been through a decent (read: not in government school) economics class, what do you know when you have low sales and falling prices?

New home prices are not done falling. The housing bubble is still in the process of bursting.

Thanks to Calculated risk for telling the truth. This is only one of several graphs that help illustrate why this was actually a BAD new home sales report. Click the image to see it full size:

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