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Signs The U.S. Housing Market Is Headed For Complete And Total Collapse

• pg 16y ago
  The reason sales of new houses were so low in May is that an expiring tax credit caused a big spike in April. The fact that this article doesn't even mention that when describing the data makes it very suspect.
  • andrewljohnson 16y ago
    Well, he didn't say it in the first slide, but if you read on: "The giant tax credit that the U.S. government was offering to home buyers artificially inflated the U.S. housing market up until April of this year." Also, it's worth mentioning that you can see the huge dip in the graph when the credit expired, and then you can also see the months after follow the same decline trend as the months before the credit. The credit propped up that graph, and now it's gloomy again.
• skowmunk 16y ago
  The question is, for how long is the collapse going to continue, and how 'total' is that 'total'. Economic cycles have been going on forever, This is just another cycle, yep, probably steeper and longer at the bottom than others. When at the bottom of the trough, especially a steep one, its often difficult to see the next peak.