Thursday, September 24, 2009

Home Sales Drop. Duh!

I posted a few months ago that all the hysteria about the housing market was overblown because people buy homes in the Spring. Those numbers don't represent recovery. Today, existing home sales were reported to have dropped by 2.7%.

This is very likely to continue. I'm only surprised that most economists were surprised. You know what? Car sales are also going to drop over the next several months. The economy is on life support due to the technocrats at the Fed. Plus, yes, a nearly $800B government pork plan can't help but prop up some spending to keep the illusion rolling through the end of this year. So it won't be disastrous again until early to mid 2010.

You can fool some of the people some of the time. But illusions and Federal Reserve Bank magic tricks can't be played forever. Eventually, real people have to take real risks and invest. With this president's policies and the amateur night comedians he has put in charge of economic policy, I don't see a sustained recovery. Hopefully, I am wrong.

No comments: