26. August 2009 21:40
A non software related tale today. Lately I have been amazed about all the 'Green Shoots' stories spun out by the media regarding economic recovery. Driving into work I heard, "Stocks open strong on good news regarding a housing recovery"....what? Well, I checked Marketwatch to see what this "good news" was and saw the following article: "US Stocks Turn Positive After Upbeat Home Sales Data". Wow, home sales climbed 9.7% in july and up 8+% year over year? Year over year growth in this economy is definitluy something to get excited about. I then turned to comments section and found this whoopee of a comment:
"As other have said countless times, please do your due civic duty of
accurately reporting the facts. There is no need for the added spin MW.
I feel really sorry for the editor because the constant spin is in the
articles while the truth is filled up in the comments section. While we
all appreciate being given the opportunity to engage in discussion, it
is sad when we have to hunt down the facts on our own time. We can
handle the truth so please just report the stone cold facts and let us
make our own judgments and interpretations. Welcome to reality.
U.S. Existing Home Sales Yr/Yr
$0 – $100,000 Up 38.8%
100,000 – $250,000 Up 8.7%
$250,000 – $500,000 Down 6.2%
$500,000 – $750,000 Down 8.9%
$750,000 – $1,000,000 Down 10.6%
$1,000,000 – $2,000,000 Down 23.3%
$2,000,000 + Down 32.4%
Source: National Association of Realtors"
Original comment is here.
And I thought, what's the real story here? Sales of bottom of the market are up, but the mid-high level is way down. Nothing real exciting here given the 8k government subsidy and the risk taking nature of first time buyers. A little more research gives a more realistic view of the current housing market: Existing Homes: WhatsReally Selling.
The media spin machine appears to be working overtime; to bad the millions of unemployed in this recession/depression aren't feeling so peachy.