More Economic Good News........Home sales surge 10.1% in October

[Annie]

That bump in houseing might be due to the tax dollars given to first time homeowners. Just like the economy got a bump with the cash for clunkers. Lot of smoke and mirrors.

Indeed, smoke & mirrors:

http://campaignspot.nationalreview.com/post/?q=ZDI1YTExNWJkMzA0MzU5YmM0MzU1NWQ4Y2JlOTRmMDE

BARACK OBAMA
'Cash for Clunkers' Impact on GDP Half of What Was Originally Estimated

Remember when the White House, deciding they weren't fighting enough battles on enough fronts, decided to take on the automotive site Edmunds.com for its criticism of "Cash for Clunkers"?

One of their points was, "We found out that motor vehicle output added 1.7% to economic growth in the third quarter — the largest contribution to quarterly growth in over a decade."

Er, not anymore. The revised numbers out today indicate that automotive consumption was less than half of what was initially estimated, contributing 0.81 of a percentage point to growth. The overall quarterly growth number was revised from 3.5 percent to 2.8 percent.

11/24 09:24 AMShare

 

[Neubarth]

WASHINGTON — Home sales surged for the second month in a row in October, climbing to the highest level in 2 years as first-time buyers rushed to take advantage of an expiring tax credit.

Home sales cycle between 4.5 and 6.5 million on a regular basis. That is nothing new. The fact that there is movement one way or another on existing home sales has no perceptible effect on the economy. We are not producing anything with existing home purchases unless the points paid to buy down a loan is considered vital for the economy.

In this case, the numbers for the past two months only show that the increase in auctions of homes have been noted.
EXISTING HOMES SALES
OCT 09 6.10M
SEP 09 5.57M