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9/19/12, "August Housing Starts Less Than Expected, Rise From Downward Revised Print," Zero Hedge
"The August housing starts number was a disappointment, printing at 750K
on expectations of a rise to 767K from last month's 746K, now revised
lower to 733K. This would have been a boost to a market trained to
expect more QE on any economic weakness, if only all QE in perpetuity,
and certainly at leat $85 billion in monthly flow, was not already
priced in. As a result, we are slowly getting to the dreaded point where
bad news is once again bad news, at which all faith in the Fed as a
monetary policy vehicle is lost (since Fiscal policy is now perpetually
deadlocked). If there was any good news, it was in the single family
starts which printed at 535K in August, a rise of 28K from July, and the
highest since April 2010 (when housing had again "bottomed") driven by a
surge in new building in the Midwest to 134K, from 111K. Finally
housing permits which are nothing but noise, declined but beat
expectations modestly. Since permits are a completely meaningless
category and are purely used by hedge funds to game the market (they
cost a token amount of money to procure, involve no actual work, and are
there merely to frame the "housing has bottomed" trope time after time,
until disproven), just like Libor, there is no point to observe them."
chart Zero Hedge
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