Sales of new homes collapsed in May by 33%--shocking analysts

Discussion in 'Politics' started by oreo, Jun 23, 2010.

  1. oreo
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    oreo Gold Member Supporting Member

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    WASHINGTON—Sales of new homes collapsed in May, sinking 33 percent to the lowest level on record as potential buyers stopped shopping for homes once they could no longer receive government tax credits.

    The bleak report from the Commerce Department is the first sign of how the end of federal tax credits could weigh on the nation's housing market.

    The credits expired April 30. That's when a new-home buyer would have had to sign a contract to qualify.

    "We fear that the appetite to buy a home has disappeared alongside the tax credit," Paul Dales, U.S. economist with Capital Economics," wrote in a note. "After all, unemployment remains high, job security is low and credit conditions are tight."

    New-home sales in May fell from April to a seasonally adjusted annual sales pace of 300,000, the government said Wednesday. That was the slowest sales pace on records dating back to 1963. And it's the largest monthly drop on record. Sales have now sunk 78 percent from their peak in July 2005.

    Analysts were startled by the depth of the sales drop.

    New-home sales plunge 33 pct with tax credits gone - The Denver Post


    As we see again--once those taxpayer hand-outs for cars and now homes stop--sales plummett.

    Obama's flood the basement economic policies are a miserable failure. The ONLY thing this President has done is gotten us into a 13 TRILLION dollar deficit--with is arrogant attitude that he can micro-manage this diverse economy.

    $9-trillion-deficit.jpg


    Now up to 13 TRILLION.

    How's all that hopey and changey working for ya?
     
    Last edited: Jun 23, 2010
  2. Yurt
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    Yurt Gold Member

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    i can't believe anyone is surprised...i predicted this would happan last year and i'm sure others did as well
     
  3. NYcarbineer
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    NYcarbineer Diamond Member

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    So the stimulus wasn't working?
     
  4. oreo
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    oreo Gold Member Supporting Member

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    The cash for clunkers told us that. This economic moron that we refer to as our President--just doesn't get it.

    He threw around 787 BILLION tax dollars--(borrowed from China) to try and micro-manage certain industries by throwing hard earned tax dollars at it.

    One would think that to quality to be POTUS--one maybe should take economics 101 first--:lol::lol:
     
  5. B. Kidd
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    B. Kidd Gold Member

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    Only indicates that a double-dip 'great' recession is around the next corner. The levels of new home sales, with this latest stat on the same level as 1960, occurred when the population was fairly less than it is today.
    Any analysts shocked by this should quit and be like G. Gordon Liddy, and hawk precious metals.
    If the past performance of history is an accurate indicator, only a World War will re-shuffle this deck of economic malaise, and if anyones' left to prosper, they eventually will.
    I hope not concerning World War, but think the train has already left the station.
     
  6. NYcarbineer
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    NYcarbineer Diamond Member

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    Then the tax deduction for your mortgage interest should be ended, right? It's moronic micro-management, correct?
     
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  7. oreo
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    oreo Gold Member Supporting Member

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    Now you know darn good and well that liberals--will jump on that and tell you that it wasn't WW2 that got us out of the Great Depression--it was FDR. I agree with you. After reading the "forgotten man" about the Great Depression--the conclusion is that the more Hoover and Roosevelt threw money at the problem--the longer and deeper it extended the Great Depression.

    I think what needs to be done now--is to bite the bullet --and dramatically CUT the size of the Federal Government--which will cut spending. Once this happens confidence will bounce back in the private sector and we will actually see the private sector start to create private sector jobs without government subsidies.
     
  8. NYcarbineer
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    NYcarbineer Diamond Member

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    World War II got us out of recession because of massive government spending of borrowed money.
     
  9. oreo
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    oreo Gold Member Supporting Member

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    Another one of your moron Presidents already tried that one---:lol::lol: Name Jimmy Carter--:lol::lol:

    You see once you take more money out of Americans pockets that they can spend on goods and services--suprisingly enough--even for you less than economic geniuse's--unemployment RISES.
     
  10. uscitizen
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    uscitizen Senior Member

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    If those analists were shocked then they are not very smart.
     

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