Tuesday, August 24, 2010

Existing Home Sales Plummet 27.2 Percent

Ouch...This is going to leave a mark:

"WASHINGTON (Reuters) - Sales of previously owned U.S. homes dropped more steeply than expected in July to their lowest pace in 15 years, an industry group said on Tuesday, implying further loss of momentum in the economic recovery.

The National Association of Realtors said sales dropped a record 27.2 percent from June to an annual rate of 3.83 million units, the lowest level since May 1995. June's sales pace was revised down to a 5.26 million-unit pace.

Analysts polled by Reuters expected existing home sales to tumble 12 percent to a 4.70 million-unit pace from the previously reported 5.37 million units in June."

Quick Take:

I had heard a whisper number of -20% but I never could have imagined a number this bad.

So Let me get this straight:  We are now seeing the largest drops in home sales in 15 years at a time when rates are at an all time low?

Ummm...Question here:

Mr.  Bernanke:  Wasn't lower rates supposed to stimulate borrowing?

There were also reports today that there is increasing dissension at the Fed about what direction the central bank needs to take moving forward.

As you can see above, the zero interest rates policy has been a catastrophic failure.  The only zero interest rate winners are the banks.  I know shocker right?  The biggest losers as a result of this policy are the prudent savers who are unable to earn any yield.

Is this how America works now?  Reward the criminals who destroyed the financial system at the expense of the people who have fiscally done the right thing?

It's time for a change America and I suggest you make your voice heard during the elections in November.

More later today.


Bill Hicks said...

I agree it is time for a change in America, but I will definitely NOT be voting in November. Who exactly would I vote FOR in this contest between two utterly failed and discredited parties?

The runaway train is heading ever faster towards the washed out bridge and there is absolutely NOTHING we citizens can do about it.

Jeff said...


So well said!

I couldn't agree with you more!

I say vote them all out anyway based on their failed policy.

I totally agree.....Hold on tight because this train is off the tracks and has nowhere to go.