Why would the USians be building new homes when they have so many already built homes sitting empty? Maybe asset bubbles ARE the new economy ...
The flexibility in the US workforce is both brutal and effective. It is as simple as that, labor gets allocated.
I’m definitely bullish on the US.
The systemic capital efficiency with the US, is also a sight to behold, the market rewards risk! Structures exist within new venture creation to ensure that both capital and labor are rewarded for the risks they take, Australians should take note. In many ways this efficiency this is only possible because the state does not stand in the way of business.
I’m seeing again, in the US, what I loved about the boom years in China. The “can do” attitude is contagious, there is no need for second guessing how some jumped up bureaucrat might @#$% with your plans, because, for the most part they don't. As for other businesses well, in boom times, why should I care that another business is also doing well. I always have the feeling in Australia that new business is treated as a zero sum game, and therefore is actively opposed by the establishment. The US mindset is that new business increases the economic pie that we all share. I love the positiveness in this message.
Now for the tricky question, can it continue? I’d say yes, but mainly because I don’t believe that China can quickly transition from being the worlds economic manufacturing slave, to becoming its self supporting master. As such China will revert to its old ways of recycling US currency, as a reward for the job they’ve been given.
US Departments of Commerce and Housing and Urban Development reported new homes sales up 8.3% in June over the May revised figure. New home sales were at 497,000 on an annual basis, the highest rate in five years. Sales were up in three of the four regions; the 12% drop in the Midwest was an adjustment to a much higher than trend rate in May but still higher than months prior to May.
Dimming the picture somewhat of a recovering housing market, the department's newest data, published on Friday, put July new-home sales at an annual pace of 394,000, down from June's 455,000.
June's number was originally reported at a five-year high pace of 497,000, which fuelled confidence home-buyers were shrugging off higher mortgage rates.
The lower numbers suggested however that the rise in rates might be impacting the market.
There are some people who seem angry and continuously look for conflict. Walk away, the battle they are fighting isn't with you, it's with themselves.
The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it. The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.
Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
Certainly was a surprisingly low number. Combined with the miss on new homes last week it makes for a rare burst of weak numbers in the US this year.
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Perth property sets new all time high. Posted: 17 Aug 2013, 10:43 AM Forum Australian Property Forum View full topic
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skamy 17 Aug 2013, 09:06 AM
Poontang we have had enough steady growth globally lately for us to begin to see the light at the end of the GFC tunnel. Of course we will have bad months of some data measures, but honestly people will drive themselves crazy if they are looking at each tiny piece of negative data for a return to the gloomy days of 2011 and even most of 2012. It won't happen now, short of some global calamity.
The economy has been cyclic for a long long time and at the moment we are in early recovery mode, yes things could grow faster and it would be great to start to see Europe making a dent in their catastrophic levels of unemployment, but things are better than they have been for quite some time.
I disagree. I picture us more in the eye of the Hurricane, it seems like the storm has past but the rest of it is yet to hit.
I fully expected to see a bad bunch of data out of the US around now. September Fed meet is coming fast and those in positions of power do not want the tap turned off. DOW dropping, Lower consumer confidence, lower than expected retail sales, lower than expected housing starts.. Oh dear, looks we can't stop stimulus yet, the economy still needs a bit of help. Let's leave things as they are for a bit longer and see how we go.
The 2nd half of the storm will include higher inflation rate and higher interest rates and those counting on an extended period of low rates should take care.
As the scouts say, Be prepared.
There are some people who seem angry and continuously look for conflict. Walk away, the battle they are fighting isn't with you, it's with themselves.
The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it. The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.
Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
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