New home sales continue to fall!
Durable orders are rising!
What does it mean?
The housing market still has not hit bottom, and government support efforts for housing prices have been a total failure. Without a housing recovery, it’s difficult to see how the economy really grows. The announcement by Bank Of America that it may write down mortgage principal could help, but allowing bankruptcy court judges to do the same would help a good deal more.
Durable goods orders are essentially replacing depleted inventory. There is no evidence, outside of export markets, that there is any sustainable demand, from either consumers or businesses.
Gorilla says: “Going nowhere less hastily is still going nowhere!”
