Housing starts coming out this morning -- a bottom in sight?
Answers
957 points
CUWu answered one year ago …
Just might be -- housing starts were up 8.2% in April...nobody saw that one coming. Just to temper this optimism, here's a quote from the Journal this morning:
""The headline increase in starts means nothing; it is all due to a rebound in the hugely volatile, but essentially trendless, multi-family sector," said Ian Shepherdson of High Frequency Economics."
So I'm not quite sure how to feel about this yet -- any input from the community?
546 points
warren answered one year ago …
Your right its just a massagin of the numbers. I would be surprised if the crisis is over since the Alt-A problem hasn't evenstarted and it's as big if not bigger than sub-prime. But c'mon, the real problem is derivatives. Level 3 specifically. The new FASB 157 could expose a real problem. I think it's 141 trillion of derivatives out there and gorwing at an impossible rate just to keep them afloat. That is the real problem and the housing crisis is a symptom. Just like rising food and gas prices is a symptom of inlfation not the cause!
Read more from warren
3963 points
MNSL answered one year ago …
We see falling property prices almost all the countries now. Credit bubble made a big mess in real estate and now some banks economists are blaming others to avoid mistakes made by them.
People have less money to spend for luxury items now due to higher inflation worldwide.
Unless we control inflation we will not have market such as real estate.
