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?