I am so very sick of every, single bit of bad economic news being described as a “surprise” or as “unexpected”. As near as I can tell, the various “experts” the media consults for their expert navel-gazing are surprised about 99.9% of the time. Which has to make one wonder just how expert the “experts” are. But I digress. Anyway, here’s today’s “surprise”: Sales of new homes plummeted to a record low – the worst ever recorded.

New home sales plummeted to a record low in May, the first month following the expiration of the homebuyer tax credit. This snapped a two-month streak of gains.

New home sales declined 32.7% to a seasonally adjusted annual rate of 300,000 last month, down from an downwardly revised 446,000 in April, the Commerce Department reported Wednesday. Sales year-over-year fell 18.3%.

This is the slowest sales pace since the Commerce Department began tracking data in 1963. The prior record was set in September 1981, when new homes sold at an annual rate of 338,000.

The experts were unable to predict that the removal of a hefty bribe of taxpayer money would stall a market that had heated up almost entirely because of the bribe? Credit has not loosened up and the experts couldn’t see that this might be a problem?

The Federal deficit for FY 2010 is 1,555.6 billion dollars. One and one half trillion dollars we don’t have spent on schemes that have helped very little or not  at all.

Obamanomics: proof positive that you can turn a silk purse into a sow’s ear.

The question is, which prior president is Obama most like? Carter?

Or Hoover?

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4 Responses to Surprise!

  1. ropelight says:

    The question is, which prior president is Obama most like?

    I’d have to say El Comandante, Fidel Castro. I would have gone with the fat guy from Venezuela, but he’s still in office.

  2. Bleepless says:

    But they are surprises and they are unexpected. Economists do not get anything important correct, except by chance. Once this happens, academia and the media raise gladsome hosannahs to the new source of wisdom — until the next prediction, when Guru New is dethroned and replaced by yet another fount of wisdom.
    I do not expect this to change until there actually are some scientific aspects to economics. Time to hold your breath? Not likely, Gaius.

  3. ropelight says:

    Ask 3 economists and you’ll get 4 opinions.

  4. martian says:

    In college my economics professor once told me that most economists are, by nature, socialists just because economics are so much more predictable when they are totally controlled. Is it any wonder they have a hard time predicting what will happen in a dynamic system like capitalism?
    As for the housing market drop after the homebuyer tax credit expired, they even had an example of what happens in those circumstances in the effect on the car market when the Cash for Clunkers program expired. Car sales plummeted for the next few months because all of the likely buyers had crowded in when the program was running. It was entirely predictable and logical and a complete surprise to the economists. They don’t even seem to learn from their own failures.

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