New home sales fall 12% in July, down 32% from last year

posted at 10:50 am on August 25, 2010 by Ed Morrissey

Look on the bright side.  It’s not as bad as yesterday’s numbers in the existing-home market, although it certainly comes close.  But otherwise, there is no other way to paint today’s report from the Commerce Department on the 12% drop in new-home sales in July as anything other than disastrous:

Sales of new single-family houses in July 2010 were at a seasonally adjusted annual rate of 276,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 12.4 percent (±10.8%) below the revised June rate of 315,000 and is 32.4 percent (±8.7%) below the July 2009 estimate of 408,000.
The median sales price of new houses sold in July 2010 was $204,000; the average sales price was $235,300. The seasonally adjusted estimate of new houses for sale at the end of July was 210,000. This represents a supply of 9.1 months at the current sales rate.

The only reason that inventory didn’t extend out to 12.4 months, as it did in the existing-home market, is because new construction has slowed considerably.  Even at 9 months, it’s too high.  That number will have to drop significantly to entice construction and create jobs, but right now, it looks like several months before the numbers start to move.

The annual-on-annual plunge of 32.4% is more significant.  Analysts have asserted that the slowdown is the natural reaction to the end of the homebuyer tax breaks, but this proves that something else is going on.  Last summer’s numbers were nothing to cheer, and we’re down almost a third from there, before the tax breaks went into effect.  Why?  Simply put, a lot more people are out of work since last year, and we have much less demand as a result.

Reuters, of course, declares this news unexpected:

New single-family home sales unexpectedly fell in July to set their slowest pace on record while prices were the lowest in more than 6-1/2 years, government data showed on Wednesday.

The Commerce Department said sales dropped 12.4 percent to a 276,000 unit annual rate, the lowest since the series started in 1963, from a downwardly revised 315,000 units in June.

Analysts polled by Reuters had forecast new home sales unchanged at a 330,000 unit pace last month.

They missed yesterday’s numbers by fourteen points, and today’s by twelve points.  What do you say, Reuters — time for new analysts to poll?

Update II: More from the AP, which avoided Reuters’ favorite adverb:

Builders have sharply scaled back construction in the face of weak sales. The number of new homes up for sale at the end of July was unchanged at 210,000, the lowest level in about 40 years.

Due to the sluggish sales pace, it would still take more than nine months to exhaust that supply, above a healthy level of about six months.

New home sales were down nationwide. They fell by more than 25 percent from a month earlier in the West, 14 percent in the Northeast, 9 percent in the South and 8 percent in the Midwest.

The median sales price in July was $204,000. That was down 4.8 percent from a year earlier and down 6 percent from June.

Expect more deflation in housing markets this year as sales dive to new lows.

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Unexpectedly…

jeffn21 on August 25, 2010 at 10:51 AM

Almost every block in my neighborhood has a house with dark windows and a lawn that is overgrown.

We are f@#$ed.

rollthedice on August 25, 2010 at 10:55 AM

If it keeps up like this, they are going to have to disassemble houses to get inventory down….

ted c on August 25, 2010 at 10:57 AM

Almost every block in my neighborhood has a house with dark windows and a lawn that is overgrown.

We are f@#$ed.

rollthedice on August 25, 2010 at 10:55 AM

Nearly getting that way where I live and it does not look like it will get better anytime soon. And it sucks because we were looking at selling and moving south in about 3-5 years. All of those empty houses and the short sells are killing my property values.

Johnnyreb on August 25, 2010 at 10:58 AM

Welcome to Hardluck Fall.

ted c on August 25, 2010 at 10:58 AM

Again wait for the revised numbers a few weeks from now

Dow at 8,000-9,000 in three weeks

Oil Can on August 25, 2010 at 10:59 AM

rollthedice on August 25, 2010 at 10:55 AM

Got a lot of for sale signs around where I live too. Tons of empty store fronts. A couple strips have signs out front advertising fixed rents that aren’t so fixed. Every couple of days the rent is decreased by twenty five bucks or so.

Things are gonna be ugly for a bit, that’s for certain.

dogsoldier on August 25, 2010 at 10:59 AM

Morgan Stanley Says Governments Will Default, Only Question Is How

* Morgan Stanley

Debt/GDP ratios are too backward-looking and considerably underestimate the fiscal challenge faced by advanced economies’ governments. On the basis of current policies, most governments are deep in negative equity. This means governments will impose a loss on some of their stakeholders, in our view. The question is not whether they will renege on their promises, but rather upon which of their promises they will renege, and what form this default will take. So far during the Great Recession, sovereign (and bank) senior unsecured bond holders have been the only constituency fully protected from partaking in this loss. It is overly optimistic to assume that this can continue forever. The conflict that opposes bond holders to other government stakeholders is more intense than ever, and their interests are no longer sufficiently well aligned with those of influential political constituencies….Investors should be prepared to face financial oppression, a credible threat against which current yields provide little protection. – Arnaud Mares, Morgan Stanley

http://www.zerohedge.com/article/morgan-stanley-says-governments-will-default-only-question-how

Cody1991 on August 25, 2010 at 11:00 AM

Maybe the government should go out and buy those homes to stimulate the housing market. Yeah! That’s the ticket!

PackerBronco on August 25, 2010 at 11:02 AM

… And then after they buy them, they can destroy them!

PackerBronco on August 25, 2010 at 11:03 AM

New single-family home sales [INSERT FROM CHOICES LISTED BELOW] fell in July to set their slowest pace on record while prices were the lowest in more than 6-1/2 years, government data showed on Wednesday.

1. Unexpectedly
2. Inartfully
3. Acted Stupidly
4. Mysteriously
5. , as a result of Bush,

BobMbx on August 25, 2010 at 11:03 AM

It’s weird. My little rural town is full of stubborn people. I have a friend, looking to buy land and property. She’s actively looking. In my town I estimate we have around 35 houses or so for sale right now. That’s about a house a block, or maybe a house for sale every two blocks. It’s still probably almost ten percent of the town.

But no one is lowering their prices! Prices haven’t budged in at least two years. So my friend is still looking. She’s looking for acreage, which is why she wants to buy–horse property. There’s lots for sale, but no one has bowed to the realities of the market and dropped prices. Those lots have been for sale for 4, 5 years….

Vanceone on August 25, 2010 at 11:03 AM

I’m going into the housing demolition & scrap recovery business…

PatriotRider on August 25, 2010 at 11:03 AM

We just got our 20 acres with nice 4 bedroom house and 6000 sq ft outbuilding sold. It had been on the market for 2 years and we took a 20% hit from original appraised value. Not a good time to be selling anything. Purchased a new no frills townhouse. No mortgage and hunkering down for the duration.

a capella on August 25, 2010 at 11:04 AM

Maybe the government should go out and buy those homes to stimulate the housing market. Yeah! That’s the ticket!

PackerBronco on August 25, 2010 at 11:02 AM

And rent them out as Section 8 housing, too!

Wethal on August 25, 2010 at 11:04 AM

C’mon Sheriff Joe….get on out there and say something stupid.

ted c on August 25, 2010 at 11:04 AM

I’m surprised there was nothing in the articles lamenting how Team Obama is still fighting the legacy of the eeeevvvilll BushChimpHitler administration.

After all, it can never be The One’s fault.

irishspy on August 25, 2010 at 11:06 AM

The housing market went wild from 2000-2006 causing houses to be grossly overpriced by 2006. The prices have been coming down since then but they’re still too high – if you want to know what a house is really worth, take the price from 10 years ago and add 50% to it.When the price of houses comes back down to what they should be they will start selling again.People who bought their houses during the 2000-2006 period probibly overpaid for them – grossly overpaid by 2005-2006.

LODGE4 on August 25, 2010 at 11:06 AM

Almost every block in my neighborhood has a house with dark windows and a lawn that is overgrown.

We are f@#$ed.

rollthedice on August 25, 2010 at 10:55 AM
Nearly getting that way where I live and it does not look like it will get better anytime soon. And it sucks because we were looking at selling and moving south in about 3-5 years. All of those empty houses and the short sells are killing my property values.

Johnnyreb on August 25, 2010 at 10:58 AM

Here in the Chicago NW suburbs we have entire ghost malls…malls with not a single tenant

PatriotRider on August 25, 2010 at 11:06 AM

The economy is crashing, Obama and Biden are lying and their idiot constituents are falling for the lies.

rplat on August 25, 2010 at 11:07 AM

And here comes the Municipal Bond collapse….

“They should be thanking me”.

BHO.

Key West Reader on August 25, 2010 at 11:07 AM

Cody1991 on August 25, 2010 at 11:00 AM

I saw that. Look at the comparative debt/GDP and debt/revenue numbers. US is in worse shape than Greece. The only thing holding up treasuries is the expectation in other countries that taxes will be raised enormously in the near future. If that happens, our debt/revenue ratio climbs to the level of Spain, but only in a static analysis. Not good.

Vashta.Nerada on August 25, 2010 at 11:09 AM

I got lost inside the 285 ring road in Atlanta a couple of weeks ago. I was driving through subdivisions of empty houses, down roads with vacant strip malls. It was like a ghost town on the southeast side of Atlanta.

I don’t think we know the half of how bad this is, or how bad it’s going to get.

AubieJon on August 25, 2010 at 11:10 AM

Count it!

lorien1973 on August 25, 2010 at 11:10 AM

Note to Reuters, et al. Only use “unexpectedly” when the numbers are better than you expect. Just sayin’.

mwdiver on August 25, 2010 at 11:11 AM

Morgan Stanley Says Governments Will Default, Only Question Is How

Cody1991 on August 25, 2010 at 11:00 AM


BIDEN:

…. ‘We’re moving in right direction’…

Baxter Greene on August 25, 2010 at 11:13 AM

Here in the Chicago NW suburbs we have entire ghost malls…malls with not a single tenant

PatriotRider on August 25, 2010 at 11:06 AM

Same down here…

Very, very sad. I’m losing my business as well. I hung on and thrived for 2 years after being let go, but my clients all have to cut back now due to the BHO policies and hence, I’m cut off.

I’m thinking about going Full Metal Galt.

Key West Reader on August 25, 2010 at 11:13 AM

The hits just keep on comin’.

It’s almost as if the PBHO administration is staffed with academia types who have never had to put their economic theories to a real-world test.

Bishop on August 25, 2010 at 11:14 AM

The June figure was revised down from 330,000 to 315,000, in case anyone wonders.

The May figure was revised down from 300,000 to 267,000. The April figure was revised down 504,000 to 446,000.

year_of_the_dingo on August 25, 2010 at 11:15 AM

The hits just keep on comin’.

It’s almost as if the PBHO administration is staffed with academia types who have never had to put their economic theories to a real-world test.

Bishop on August 25, 2010 at 11:14 AM

Almost?!?

AubieJon on August 25, 2010 at 11:15 AM

Dem new economic plan:

ok time to bring out the bulldozers.

unseen on August 25, 2010 at 11:16 AM

According to Joe Biden, this is all a good thing.

But those damned Republicans want to take you back to the dark days of near full employment and end-over-end private sector growth.

F-ing FASCISTS.

Good Lt on August 25, 2010 at 11:18 AM

Dem new economic plan:

ok time to bring out the bulldozers.

unseen on August 25, 2010 at 11:16 AM

On I-4 between Orlando and Lakeland there is a huge auction going on for heavy equipment. To see those bulldozers, front end loaders, tractors, etc., sitting there (there are thousands of them) doing nothing just breaks my heart.

Think about all of the jobs lost. And think of the Obama Economic Plan for us…. Equal poverty for all.

Key West Reader on August 25, 2010 at 11:22 AM

Vashta.Nerada on August 25, 2010 at 11:09 AM

Yes, indeed. While attention was focused on Greece recently I saw the charts with US data. Terrifying.

This isn’t simply a Keynesian nightmare. It’s a Keynesian death spiral if we don’t act quickly.

Cody1991 on August 25, 2010 at 11:24 AM

Any clingers out there still think this isn’t intentional?

We need to storm the cockpit, my friends.

Let’s roll.

jeff_from_mpls on August 25, 2010 at 11:29 AM

ted c,
you joke, but I believe they started razing parts of Detroit as a last desperate measure.

rob verdi on August 25, 2010 at 11:31 AM

Last words of Mohamed Atta to the passengers:

“Just stay quiet and you’ll be okay.”

Whatever the Obama administration says today will be some variation of just stay quiet and you’ll be okay.

We know how these people think and act. We have been warned.

jeff_from_mpls on August 25, 2010 at 11:32 AM

Maybe the government should go out and buy those homes to stimulate the housing market. Yeah! That’s the ticket!

PackerBronco on August 25, 2010 at 11:02 AM

And rent them out as Section 8 housing, too!

Wethal on August 25, 2010 at 11:04 AM

Declare amnesty to make sure there are people to live in them.

BowHuntingTexas on August 25, 2010 at 11:33 AM

Almost?!?
AubieJon on August 25, 2010 at 11:15 AM

The White House assistant clerical mailroom envelope stuffer once had a paper route for two weeks before coming down with a case of the hives. So yes, “almost”.

Bishop on August 25, 2010 at 11:33 AM

Not to worry: Obi-Won is preparing his grand plan to turn all this around, pronto. He’ll launch his campaign next week under the slogan, “Tanned, rested and ready: it’s all about the ‘O’”

ya2daup on August 25, 2010 at 11:34 AM

If it keeps up like this, they are going to have to disassemble houses to get inventory down….

ted c on August 25, 2010 at 10:57 AM

But just think of all the jobs that deconstruction will save or create!

UltimateBob on August 25, 2010 at 11:36 AM

Any clingers out there still think this isn’t intentional?

There is no other explanation.

lorien1973 on August 25, 2010 at 11:37 AM

Why can’t the government just hire people and pay them to dig holes and fill them in? That’s a “job,” isn’t it? Why do Republikkkans hate America and apple pie?

/O-bot economic theory

Good Lt on August 25, 2010 at 11:38 AM

As if Obama’s administration would admit REAL UNEMPLOYMENT FIGURES substantiated by 32% fall of home sales from last year. Buyers’ market is poisoned by the nation’s bankruptcy taxes for no civic/public works accomplishments–as if any Potus would admit his own administration’s fraud, or for that matter federal bankruptcy, either.

maverick muse on August 25, 2010 at 11:39 AM

Same down here… Very, very sad. I’m losing my business as well. I hung on and thrived for 2 years after being let go, but my clients all have to cut back now due to the BHO policies and hence, I’m cut off. I’m thinking about going Full Metal Galt. Key West Reader on August 25, 2010 at 11:13 AM

Ditto that, KWR. Trying to cash out of mine right now while there’s still any value left, buy myself a distressed property in a low-tax state, and hunker down.

What will happen to all the millions of newly homeless? Google “FEMA camps”. PBHO’s plan is working perfectly.

Fishoutofwater on August 25, 2010 at 11:39 AM

Man, I’m glad I rent sometimes. And have family who have paid off their homes if worse case scenarios happen–they have lots of living space and have been planning for this kind of thing for years.

I only foresee two thriving economic sectors come January: the one boom one that has the Democrats to thank for it, i.e. the guns and ammo/emergency survival sector, and the second sector is the “How to deal with Obamacare” sector. Everything else, diddly-squat.

But at least there’s full employment at the local ammo plant! Years of backlogged orders, too. I keep thinking I should try to start an ammo manufacturing plant here for our depressed local economy.

Vanceone on August 25, 2010 at 11:47 AM

But no one is lowering their prices!

Vanceone on August 25, 2010 at 11:03 AM

I’m looking for a house, and have run full force into this. They need to sell, but they bought for so much, and/or are so deep in debt, they they cannot emotionally bring themselves to value their property to the new reality.

Rebar on August 25, 2010 at 11:48 AM

Some think Obama is following Alinsky + chaos theory:
1. Policies and statements that lead to chaos
2. Incite the other side to violence
3. Fool the “middle” into thinking you are the good guy, then implement tighter socialist controls.

It couldn’t be true.

faraway on August 25, 2010 at 11:52 AM

What’s the figure per federally sponsored “NEW” job? Something like $168K per nonexistent job. saved/created remains a figment of propagandists’ imagination.

And now every citizen “owes” the federal government $42K, as if even THAT would cover our deficit. In their brilliance, Congress would reassess duplicate taxes to resupply all public funds that THEY themselves absconded to fund socialist bureaucracies, unconstitutional “entitlements” and earmarks.

Given the Left’s interpretation purging any reference of Christian religion from anything receiving tax funds, we should sue Hillary Clinton for directing tax dollars to provide Feisal Abdul Rauf, NOT a federal employee, travel expenses to vacation where he gathers more radical Islamic support abroad.

maverick muse on August 25, 2010 at 11:53 AM

BIDEN:
…. ‘We’re moving in right Direction’…
Baxter Greene on August 25, 2010 at 11:13 AM

There’s only one Direction you can move when the Democratic Oppressives have Driven the car off a cliff.

DOWN

Chip on August 25, 2010 at 11:58 AM

Double dipping we go, double dipping we go … It’s off the Imam Obama’s socialism town, a double dipping we go.

How’s that hopey changey thing working out for you now? You figured out you been had yet?

I bet those Styrofoam Temples really look stupid to you now.

tarpon on August 25, 2010 at 11:59 AM

It’s pretty bad when you hate where you live, hate the house you live in, can’t sell it because you owe more than it’s worth, but still consider yourself lucky that you can afford the mortgage payments.

Welcome to the American Dream.

Jaynie59 on August 25, 2010 at 12:01 PM

Some think Obama is following Alinsky + chaos theory:
1. Policies and statements that lead to chaos
2. Incite the other side to violence
3. Fool the “middle” into thinking you are the good guy, then implement tighter socialist controls.
It couldn’t be true.
faraway on August 25, 2010 at 11:52 AM

That might work if the Oppressives had a tight control over the media, and we have Many Non-violent options.

Chip on August 25, 2010 at 12:03 PM

Jaynie59 on August 25, 2010 at 12:01 PM

garden?

maverick muse on August 25, 2010 at 12:05 PM

With all these empty houses people are writing about, where are those people? In apartments, staying with family/friends, van down by the river?

Wondering why we have not seen more stories about homeless people.

albill on August 25, 2010 at 12:07 PM

Wondering why we have not seen more stories about homeless people.

albill on August 25, 2010 at 12:07 PM

People are only homeless during a republican administration.

Rebar on August 25, 2010 at 12:09 PM

It appears that all of the normal people watching the market are at lunch and the manipulators are desperately tying to keep it above 10,000.

MobileVideoEngineer on August 25, 2010 at 12:09 PM

Ain’t Obamanomics WONDERFUL?

GarandFan on August 25, 2010 at 12:10 PM

WH team of economic advisors complete emergency retreat meeting, release new economic metrics to be used in 2011 to show success of liberal spending habits:

New job category to be added to “saved and created”: Jobs we “thought real hard about” this month

BobMbx on August 25, 2010 at 12:10 PM

Ain’t Obamanomics WONDERFUL?

GarandFan on August 25, 2010 at 12:10 PM

Welcome to the “O-cession”

BobMbx on August 25, 2010 at 12:11 PM

And rent them out as Section 8 housing, too!

Wethal on August 25, 2010 at 11:04 AM

Wait ’til you see what a neighborhood of HUD & Section 8 refugees does to your property value.

bloviator on August 25, 2010 at 12:11 PM

Drudge has virtually broken out the black bunting…end of times…

d1carter on August 25, 2010 at 12:13 PM

It’s actually a pretty good question about the homeless. Just what has happened to the people? With 18 % unemployment, I have to believe that there are LOTS who are not paying their mortgages on the McMansions. Are the banks just not forcing people out? I can believe that, since there is an overwhelming number of homes to foreclose on, and no buyers.

But I haven’t noticed a large spiraling population of bums on the street either, so maybe people are just crashing with family?

Vanceone on August 25, 2010 at 12:13 PM

I do think that we do not have a clue how bad it is and Obama is just playing golf.
It is hard to phathom how this is not on purpose.

ORconservative on August 25, 2010 at 12:18 PM

But I haven’t noticed a large spiraling population of bums on the street either, so maybe people are just crashing with family?

Vanceone on August 25, 2010 at 12:13 PM

In the 70′s I had to live in a Salvation Army with my mom because we had no money, so I am very sensitive to people who live on the street and to people who are hungry.

Yes, they are on the streets in abundance. Charities are taking them in and giving food, but the food banks are emptying and the crowds still grow. There are folks that can stand on the street corner with a cardboard sign asking for work, but the police quickly close in and remove them. Not sure if they go to jail or just get dropped off under an overpass.

Homeless, hungry, despondent… there are more than the MSM will allow you to see. Take a drive in your car. You will see.

Key West Reader on August 25, 2010 at 12:22 PM

Orleans, one of the biggest homebuilders around here, closed about a month ago. These numbers do not surprise me.

rockmom on August 25, 2010 at 12:22 PM

Look on the bright side. It’s not as bad as yesterday’s numbers in the existing-home market, although it certainly comes close.

Actually, I would argue that today’s numbers are much worse than yesterday’s. In both cases, we’re seeing the effects of people being unable to buy a house (either existing or new). What makes the drop in new home sales much worse than the drop in existing home sales however(even though the raw numbers are smaller), is that sales of existing homes generate comparatively little benefit to the overall economy. Real estate agents, title companies, and/or lawyers get a bump in their income for the services they provide in the final sale, but that’s about it. By contrast, new home sales mean lots of jobs across the board. Carpenters, roofers, plumbers, painters, floors, landscaping, architects, etc. – all these people need new homes being built and sold. They get nothing at all out of sales of existing homes. So even if sales of existing homes was doing OK, the economy would still be taking a huge hit from the dramatic decline in new home sales.

Harrell on August 25, 2010 at 12:26 PM

Homeless, hungry, despondent… there are more than the MSM will allow you to see. Take a drive in your car. You will see.

Key West Reader on August 25, 2010 at 12:22 PM

The media never, ever report on homelessness or hunger unless there is a Republican in the White House. You should know that!

I pick up day-old baked goods every week from a local grocery and take it to a Catholic food pantry. I’m seeing more and more people that look like middle-class folks, with newer-model cars, coming for free food. I also help serve a community lunch once a month for anyone who wants to come, and our numbers have doubled in the last year. We’re seeing moms and dads coming in with kids, and more people waiting until the end to get the leftovers to take home.

rockmom on August 25, 2010 at 12:27 PM

It is a shame, then, that the homeless problem is worsening. I’m fortunate enough to live in a small rural county, and we are being hit hard as well with the financial despair. My previous employer had around 200 people working for them in March. Now they have 19. For our community, that’s a huge hit.

And I’m sure that’s just the story around the country. Is this worse than Carter yet?

Vanceone on August 25, 2010 at 12:33 PM

All of those empty houses and the short sells are killing my property values.

Johnnyreb on August 25, 2010 at 10:58 AM

If the market where you want to buy is roughly similar to the one you’re leaving, shouldn’t be a problem. You’ll get less for your current home but pay less for your new one. I plan on moving next year as well and that’s how I see it.

MJBrutus on August 25, 2010 at 12:36 PM

And I’m sure that’s just the story around the country. Is this worse than Carter yet?

Vanceone on August 25, 2010 at 12:33 PM

In some ways yes and in others no. Unemployment is worse and growth non-existent. OTOH, we have no inflation to speak of yet. Not that we’re not trying to bring it about.

MJBrutus on August 25, 2010 at 12:41 PM

It appears that all of the normal people watching the market are at lunch and the manipulators are desperately tying to keep it above 10,000.

MobileVideoEngineer on August 25, 2010 at 12:09 PM

It looks like people are starting to come back from lunch.

MobileVideoEngineer on August 25, 2010 at 12:42 PM

In some ways yes and in others no. Unemployment is worse and growth non-existent. OTOH, we have no inflation to speak of yet. Not that we’re not trying to bring it about.

MJBrutus on August 25, 2010 at 12:41 PM

Well, the inflation will take care of itself, soon enough. It’s got to come. The only conceivable way to pay the government bills now is to just print dollars. With no tax revenue due to the disastrous economy, I can’t imagine there is much appetite left for new bonds. Who’s going to buy bonds, and with what money?

Hang on, it’s gonna be a bumpy ride.

Vanceone on August 25, 2010 at 12:49 PM

We’re seeing moms and dads coming in with kids, and more people waiting until the end to get the leftovers to take home.

rockmom on August 25, 2010 at 12:27 PM

God bless you, Rockmom… The situation on the ground is worsening by the day, and I’ve seen what you described myself. In past times, you could tell someone was hungry or homeless by their appearance. These days, there are middle class folks who still have their clothes and their shoes on. Usually, the man stays behind and lets the wife take the food or the clothes and the necessities.

Let’s hope that the charities can continue to help.

Obamanomics – bad for America.

Key West Reader on August 25, 2010 at 12:50 PM

With 18 % unemployment, I have to believe that there are LOTS who are not paying their mortgages on the McMansions. Are the banks just not forcing people out?

Vanceone on August 25, 2010 at 12:13 PM

Search yahoo or google for Obamaville. These cardboard and plastic homeless villages are springing up all over.

btw, real unemployment is over 21% if one chooses to count all the unemployed the administration wants to forget.

http://www.shadowstats.com/alternate_data/unemployment-charts

I used to think people complaining about faked government data were crackpots. So I used all my engineering talent and problem solving skills to dig into the stats myself. Guess what? The government does “massage” the numbers.
They collect data by dubious methods (Surveys? Jeez Louise!)
as well.

To their credit they often release information about how they’re changing the algorithm for calculating various things or how they will report them.

They make no effort to census the homeless. I tried to dig into that and ran into a wall. There are a couple old estimates, but that’s it.

dogsoldier on August 25, 2010 at 12:51 PM

Is this worse than Carter yet?

Vanceone on August 25, 2010 at 12:33 PM

Yes.

When Carter was in office I worked at Der Weinerschnitzel.

Now? I’m not qualified.

Key West Reader on August 25, 2010 at 12:52 PM

Housing prices had to fall. It’s just common sense. A house must be affordable to the type of person interested in buying it. Thanks to loose money policy and a willingness to turn a blind eye to fraud we’re in for a violent, painful, correction.

DFCtomm on August 25, 2010 at 1:01 PM

Simple question – is America better off now than it was 4 years ago? Hell – how about even one year ago?

No, and no.

And to Vice President Joe Biden, that’s the “right direction.”

Good Lt on August 25, 2010 at 1:01 PM

Very, very sad. I’m losing my business as well. I hung on and thrived for 2 years after being let go, but my clients all have to cut back now due to the BHO policies and hence, I’m cut off.

I’m thinking about going Full Metal Galt.

Key West Reader on August 25, 2010 at 11:13 AM

I’m so sorry! What business are/were you in?

Mary in LA on August 25, 2010 at 1:22 PM

Yeah, its a crash all right. What other word is there when a market loses so much steam over the course of a month? And how come Ed is the only one calling it a crash? or are there others?

james23 on August 25, 2010 at 1:24 PM

I predict that soon, trucks that deliver stock to grocery stores will have armed guards.

If not for food stamps and welfare this would already be the case.

esnap on August 25, 2010 at 1:27 PM

If it keeps up like this, they are going to have to disassemble houses to get inventory down….

ted c on August 25, 2010 at 10:57 AM

We’re already facing a ‘ticking time bomb’ of poorly-built McMansions that will have to be demolished in a decade at most.

Dark-Star on August 25, 2010 at 2:14 PM

Here in the Chicago NW suburbs we have entire ghost malls…malls with not a single tenant

PatriotRider on August 25, 2010 at 11:06 AM

We’re about to have our own ghost mall here; a giant one that’s been around for decades. The only thing left of it will be a JCPenny that’s connected to the main building…for as long as they can stay open.

About the only hope for an increase in business is if it actually gets haunted and turns into a tourist/ghost hunter attraction.

Dark-Star on August 25, 2010 at 2:24 PM

Democrats spent an entire year on Obamacare instead of focusing on the economy.

TN Mom on August 25, 2010 at 2:47 PM