Saturday, February 27, 2010

Homes, Goods, and Jobs

Our phony economy is composed of consumers borrowing money and spending it.

In order for them to do that they have to be confident that things are turning for the better.  This is the importance of the government and media propaganda that you see, touch, and hear on a daily basis.

Unfortunately, the consumer confidence number this month plunged from 56.5 to 46.  This was a record month over month drop and is catastrophic for the prospects of our phony recovery to continue much longer.

What could be making the American public not believe what they are hearing on television?  Mabye it's the real world they live in when they turn off the TV.

New home sales this month plunged 11.9% month over month, taking it down to an all time record low of 309K seasonally adjusted annual starts.  This also erases all the gains made over the last year.

If people are not buying new homes, they must be buying existing homes right?

New home sales fell 7.2% from the previous month coming in at 5.05 million.  The previous month's 5.44 million was a 16% drop from the month before that.

Durable goods orders came in horrendous.  Unemployment claims unexpectedly surged.

The recovery only exists in the six figure government jobs and the record banking bonuses.  The rest of America just moves closer to food stamps.

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