Fuzzy Numbers and Central Bank Follies

Monday, July 26, 2010, 11:19 AM
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One of the great things about government data is the entertainment value it provides.  Among the fuzziest of numbers are new home sales, which are subject to both sampling bias and opaque seasonal adjustment factors.

Perhaps a few other weaknesses are among them as well, such as counting contracts signed but never accounting for failed closings (which happens regularly).

With that said, let's turn our attention to the government new homes sales announcement, as faithfully reproduced by the mainstream media, which sent the stock markets higher.


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