Friday, May 16, 2008

Where... oh, the recession?

It's another bad day for those lying politicians of one political party that would have you believe that we are in a recession. Worse yet, it's a really bad day for the extremists who would have you believe that we are past recession and actually in some kind of great depression.

Today, the construction of new homes came in at a whopping 8.2% increase for the month (See Full Story).. Does anyone think that the home builders of this country would pour tons of money into building new homes if they thought they couldn't sell them? I don't think so. The fact is that the lowering of interest rates over the last few months has put new home buying back on the map.

Don't expect existing home sales to perk up soon. The value of homes has fallen anywhere from 10% to 30% across the country and homeowners are not going to be so inclined to sell the homes that they own until the value of those homes starts going back up.

As I have said many times in this blog, there may never be a recession; just a slow down in the economy. Something that the economists not-so-technically call a "dip". Certainly, there are no classic signs of one. The politicians would have you believe otherwise so that they can sell their line of B.S. that they, and only they, can save this economy from any further and, potentially, complete disaster.

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