American dream or American nightmare?
The housing numbers just keep getting uglier. From Mish’s blog today:
Hard to argue with him.
And yet Housing Starts were up for the month of June. Why are they adding supply to a supply glut? What Are They Smoking?
Reminds me of Einstein’s definition of insanity.
Housing starts up in June. What does that spell? D – E – N – I – A – L, with a healthy dose of delusional wishful thinking.
Sigh. We still have such a long way to go.
Housing starts in June were at a seasonally adjusted annual rate of 582,000. This is 3.6% above May but is 46.0% below the June 2008 (year early).
That is not what they said at all – that 3.6% has a margin of error of 11.3%. Huh? With a margin of error like that, they’d should just fess up and admit…"we don’t know"
On a personal note, the American Nightmare may become my dream.
My wife and I have always had a dream of relocating, The region of the country that we live in did not significantly participate in the housing bubble, so as our house stayed the same in value, we saw the prices of homes in the areas of the country that we wanted to relocate to soar in value. This was very frustrating because it meant that we couldn’t really afford to relocate. So instead of pursuing our dreams, we did the prudent thing and stayed put and payed our house off.
So now, on the flip side of the housing bubble, we are seeing the value of our home appreciate in value relative to the rest of the country. And our local economy seems to be strong in relation to the bubble-land regions. I’m growing more confident that our patience is going to pay off, and we will one day be able to pursue our dream of relocating.
From my perspective, mean-reversion is a wonderful thing.
"It’s Called the American Dream because you gotta be asleep to Believe it" – George Carlin