Purchases of U.S. Existing
Homes Unexpectedly Fall
Sales of U.S. previously owned homes unexpectedly fell in May, a sign demand was probably pulled into prior months before a June tax-credit deadline. . . .
The decline raises the risk the retrenchment following the expiration of the tax credit will be deeper than anticipated. . . .
Instapundit has noted the increasing recurrence of this phrase. At what point will financial journalists begin to realize that nearly all this happy-talk about “recovery” is generated by Obama administration officials and their allies engaged in politically motivated spin?
Peter Ingemi observes that there is no substitute for reality, and this is especially true in economics. If reporters want to expect or anticipate something, let me offer a three-word suggestion.
I would ask if these people are children or fools, but even children and the occasional fool can recognise patterns, even if they lack a coherent understanding of the reasons why those patterns exist.
I would ask if these people are children or fools, but even children and the occasional fool can recognise patterns, even if they lack a coherent understanding of the reasons why those patterns exist.
Housing prices need to adjust. It is what markets do. Is a modest home ten times the community’s mean income level overpriced? Yeah.
Housing prices need to adjust. It is what markets do. Is a modest home ten times the community’s mean income level overpriced? Yeah.
Well, you’ve not only had the tax incentive to buy, there’s also been the Obama mortgage relief program (an abysmal failure which nonetheless contributed to market disruption). Foreclosures are mounting again.
As with the “cash for clunkers” deal, the primary effect was to accelerate the decision-making for those who were already inclined to buy soon, essentially moving future purchases up into the present to make the present appear stronger than it really is.
But not to have “expected” the inevitable equilibrium to come back just betrays an utter lack of economic understanding – which apparently qualifies these legacy media writers to be top advisers in the Comrade Obama regime.
Well, you’ve not only had the tax incentive to buy, there’s also been the Obama mortgage relief program (an abysmal failure which nonetheless contributed to market disruption). Foreclosures are mounting again.
As with the “cash for clunkers” deal, the primary effect was to accelerate the decision-making for those who were already inclined to buy soon, essentially moving future purchases up into the present to make the present appear stronger than it really is.
But not to have “expected” the inevitable equilibrium to come back just betrays an utter lack of economic understanding – which apparently qualifies these legacy media writers to be top advisers in the Comrade Obama regime.