This can not be good:
July 17 (Bloomberg) -- Housing starts in the U.S. unexpectedly rose in June as construction of single-family dwellings jumped by the most since 2004, signaling the market is stabilizing. The 3.6 percent increase brought starts to an annual rate of 582,000, the highest level since November and followed a 562,000 pace in May that was higher than previously estimated, the Commerce Department said today in a Washington. Building permits, a sign of future construction, rose the most in a year.
"Signaling the market is stabilizing" That is insane!!!
How can building more houses be good for the economy? We have so many houses in foreclosure and so much available inventory. This is foolish. I think building more in this current financial crisis is criminal. It will bring down housing values further, destroying equity (whatever is left) for most people. The lenders are behind this taking money from the discount window at 0% basically and lending at 5, 6, 7 or more percent. If the loans fail, there is still 'plenty' of TARP money available. That way we can see more banks, etc make $3-4 billion/quarter, while the taxpayer gets fleeced.
I get sicker by the day.
