by John Galt May 16, 2012 16:30 ET While the mainstream media engages in P.L.O.P.O.O. (Putting Lipstick on Pig of Obamanomics), the reality of today’s housing numbers are still so bad, they would even embarrass Lyndon Baines Johnson; hell, maybe even Harry Truman! The Media’s PLOPOO updates look like this: Rebound in Housing Starts Housing market posts best stretch of growth in nearly four years Housing starts, single-family building permits jump in April Builders start construction on more...
by John Galt February 16, 2012 21:45 ET The housing news, as usual, was spun by the Obamamedia, the Fedomedia, and the Bullmedia as the ultimate sign that once again, for the 113th time in 4 years, “We’ve turned the corner!” And as the unicorn pooping skittles and rainbows sprayed the news over Wall Street and the gullible morons of the nation, reality is here, at these pages. First, let’s not sugar coat this. Starts were up my friends. They were up nicely....
by John Galt February 5, 2012 11:15 ET Gretchen Morgenson has produced a story in this morning’s edition of the New York Times which is a must read as a primer regarding the severity of fraud within the mortgage and real estate industry: A Mortgage Tornado Warning, Unheeded (Click on the title to read the story in full) The one portion, excerpted from the story above, which should tantalize my readers and cause great pause is as follows: Now he splits his time between...
by John Galt January 29, 2012 22:00 ET There will be great discussion about the “recovery” of 2011, but the reality of just how dire the economy is for Main Street is best defined by the one asset the average soul attempts to hold up as their primary investment, the single family house. Unfortunately for the political elites, the disaster which was housing in 2007 is not much better in 2011 and in fact appears to be taking a sharp, decisive turn to the...
By John Galt December 30, 2011 07:50 ET Buckle up. 2012 is almost here. Last year I was so-so in my predictions and for 2012 I probably will be also. If you are meek put on your Depends for this show or just assume the fetal position when the theme music stops. In the first half hour I’ll cover the news of the day, the financial news and then begin the prognostications which cover geopolitics, sports, U.S. politics, the economy, weather, and whatever else...
By John Galt October 26, 2011 – 10:20 ET The September new home sales report is out from the Commerce Department (click here for PDF version of the release) and as usual, the mainstream and Bubblemedia focuses on the seasonally adjusted annualized figures instead of the actual month over month change. The raw data, aka non-seasonally adjusted numbers show a July figure revised down to 27K from 28K, August revised down to 25K from 26K, and September’s initial figure of 25K. In other words...
By John Galt October 19, 2011 – 21:45 ET US Economy: Home Starts Jump, Consumer Prices Stabilize BusinessWeek Housing starts jump 15 percent in September Kansas City Star Increase in housing starts could portend improving market The Hill (blog) Just sigh. There is no bottom until there is no hope. When will these people learn? Of curse when there is an agenda to yell into an empty stadium for everyone to rise up and cheer, the current crop of “journalists” and “economists” acting as...
By John Galt October 18, 2011 – 22:00 ET Remember the joys of 2008? The backroom deals. Hank Paulson intimidating the elected morons into cutting unconstitutional deals to steal monies from taxpayers to bail out the banksters. President Bush acting like an idiot on television claiming the economy was still okay and the U.S. would be fine. Fast forward to 2011: The backroom deals. Turbo Timmy Geithner and the Fed pressuring the states to accept an unconstitutional deal to give immunity to and bail...
By John Galt September 26, 2011 – 12:15 ET To say that this morning;s report from the Commerce Department was any encouragement about a long term economic recovery in the construction industry would be a major lie. The data continues to reflect and bounce along the long term bottom created by the speculative frenzy from the previous decade. The most interesting stats are reflected in the ongoing decline in sales for homes over $300,000. First chart for review is the monthly new home sales...
By John Galt August 29, 2011 – 18:28 ET Oh man, oh man, oh man. Thank you Yves Smith for capturing this one: FDIC Objects to $8.5 Billion BofA Settlement (Updated) Click on the link to read the FDIC document and the bloodshed. Thank you Yves at Naked Capitalism. Wow, this is a fun one to read because the truth is sadistically painful and enjoyable.
By John Galt August 24, 2011 – 08:55 ET Starting this month I shall be updating the series, sometimes with a special news entry when justified, but definitely in the Economic stats and data pages in the upper right hand corner of these pages. The latest sales figures reflect the depression in real estate continues with an average duration on the market for new homes still in excess of 6 months, this month at 9.4. Until the housing market recovers the American economy will...
By John Galt July 26, 2011 News happens. Get the real take tonight on the Voice of Galt only on Just Measures Radio. Especially Tonight. To call into the program dial: (877)213-6404 or (812)307-4363. Just click on the banner below to find the various audio players to listen or to participate in the chat room with like minded Americans.
By John Galt July 3, 2011 As the American stock markets celebrate another episode of “extend and pretend” until January 1, 2012 in the Eurozone’s basket case de jour, the truth is that the Greek housing market is nothing more than a smaller version of my home state of Florida. Thankfully for the United States and European Central Bank, Florida is not a member of the European Union or it would be toast. The funny thing that happened along the way to the...
By John Galt June 19, 2011 I first wish to thank my readers for their patience as the website has undergone several transitions over the past few weeks along with my personal schedule which has kept me somewhat silent with regards to posts on economic data and working away from my readers who I missed dearly. With that behind me, let’s look forward by reviewing the monthly data dump from the Census Bureau. I. Housing Starts Finally, again, we can blame the weather....
By John Galt June 19, 2011 The foreclosure crisis is officially at half time, sitting in the locker room, and waiting on the coach to come out with a second half strategy. The media, especially some members of the analyst and financial bubblevision press on television, have been desperately attempting to paint a picture of an improving economy resulting in fewer foreclosures and the hope of mortgage modifications helping to stem the tsunami. The statistics are further from the truth than ever. First...
By John Galt June 13, 2011 This story from the Wall Street Journal this morning: Bank Probes Its Executives appears to indicate that the insiders who did not sell after the 2009 crash and burn may well regret their inaction. Region’s Financial is facing a slew of major obstacles including almost $4 billion in NPL’s (Non-performing loans), a real estate portfolio in Florida which is deteriorating in both credit quality and price, and not receiving regulatory permission from the Treasury Department to repay the...
By John Galt May 28, 2011 The nightmare report from the National Association of Realtors (NAR) yesterday was mixed with humor from Lawrence Yun and a notable shift in the double dip portion of America’s housing industry disaster. With upwards of one third of all existing home sales anchored by distressed sales, the pending home sales report usually reflects a trend of recovery or further decline and based on the four month average the market is headed for a serious deterioration as the index...
By John Galt May 24, 2011 First, read the propaganda from the MSM: Home Sales Buoy Hopes for Real Estate Wall Street Journal - Robbie Whelan US new home sales at 4-month high, supply drops Economic Times New Home Sales Pick Up For Second Straight Month NPR U.S. April new home sales up 7.3% MarketWatch - Greg Robb New home sales up in all regions, inventory at historic lows AgentGenius The last headline is particularly amusing because when you break down the truth of the inventory...
By John Galt May 18, 2011 The weekly report on mortgage applications for purchase without seasonal adjustment from the Mortgage Bankers Association illustrated a somewhat impressive improvement only registering a year over year decline of 1.7%. It is not positive which would not take much based on the volumes but it does lean towards some traffic testing the waters of the housing industry bouncing along the bottom.
By John Galt May 17, 2011 The Commerce Department released the latest report on housing starts and permits revealed that no sane, logical, intelligent soul would accept the FIBS (Financial Infomercial Broadcasting Services, aka CNBC, FBN, BLM) mantra of the past year that housing has bottomed and that the recovery was well under way. Amazingly enough the preachings and screeching of the pro-regime talking heads was non-existent on the morning radio or television programs. Thus there is a realization that perhaps, just perhaps, free...
By John Galt May 16, 2011 The National Association of Homebuilders/Wells Fargo Confidence Index came in at flat level to April after last month was revised upwards from 15 to 16. The bad news was buried in the report (at this link) where builders indicated that ninety percent of the builders were concerned about the ability to sell the homes at the price they designated and seventy-three percent said they saw problems with consumers obtaining financing for the purchase. So much for the summer...
By John Galt April 25, 2011 The statement from the Bureau of the Census via the Department of Commerce is pretty stark: Sales of new single-family houses in March 2011 were at a seasonally adjusted annual rate of 300,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 11.1 percent (±21.7%)* above the revised February rate of 270,000, but is 21.9 percent (±10.3%) below the March 2010 estimate of 384,000. The...
By John Galt April 21, 2011 And the hits keep on coming (from Housing Wire): RadarLogic home prices hit lowest level since 2003 All I can add is “you ain’t seen nothing yet” to quote BTO and folks when that headline replaces 2003 with 1995 or 1996, that is when we will probably be close to a bottom in real estate.
By John Galt April 21, 2011 If this is a recovery, I can’t wait to see the next recession, er, depression, er bubble boom….. MLB Takes Over Dodgers Operations Lee County’s $340 million foreclosure auction draws no serious bids Commercial real estate makes up 77% of troubled loans at failed banks Rising food costs spur massive US theft of produce, meat NM Symphony Orchestra Files Chapter 7 Bankruptcy Scovill Fasteners Seeks Bankruptcy Protection to Sell Assets (209 year old Company) Maronda Homes...
By John Galt April 11, 2011 And 2020 might be conservative…. Despite the prognosis from the mouth flapping pantloads of D.C. and Wall Street, the American real estate market is close to a decade away from recovery; if not longer. The popular proclamations from the National Association of Realtors is that the existing home sales should increase 5 to 10% this year which is akin to saying we’ve climbed ten feet up from the bottom of a one hundred foot well we’ve fallen...
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