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Showing posts from April 16, 2010

March Housing starts UP, but why and is that good?

This morning we were greeted with some news that housing starts are improving .  A 7.5% increase from February!  Housing starts are defined as: is the number of privately owned new houses (technically housing units).  So is this good news or bad news?  Think about it...think about it....not sure? Ok, consider the following story.  Foreclosures in March jumped as more and more people find it impossible to pay their overly inflated mortgages.  Ironically, a 7% increase from previous quarter.  So we have two almost conflicting pieces of information.  On one hand people cannot afford houses and are forced to give up their properties, on the other hand builders are creating more and more houses.  What gives?  I will tell you what gives.  Keynesian stupidity is what gives.  Specifically the Obama administration and everything it is doing to artifically maintain housing prices.  We know they are artifical, because otherwise there would not be so many foreclosures.  Our economy is despe