Jim’s Mailbox
Posted by Jim Sinclair on September 25, 2010 @ 2:51 pm in Jim's Mailbox
Pace of new home sales second slowest on record
CIGA Eric
New homes sold at the second-slowest pace on record in August, signaling that the housing market will remain a drag on the economy.
The second break in the secular downtrend within housing is a big concern for an over-leveraged, consumption-driven economy. The article characterizes this concern as a "drag". I would characterize it as an anchor. The dead-weight of housing ensures more bailouts and "save me" stimuli.
New Home Sales And Change YOY, SA 
[1]
Home prices struggle while gold soars. The relative comparison illustrates an anchor-like drop to at least the 1980 lows.
U.S. Median Home Price (MHP) to Gold: 
[2]
Source: finance.yahoo.com [3]
More… [4]
Jim,
Here is an interesting commentary on gold from David A. Rosenberg, Chief Economist & Strategist at Gluskin Sheff and Associates in Toronto.
Previously he was Chief North American Economist for Bank of America.
Regards,
David D
URL to article: http://www.jsmineset.com/2010/09/25/jims-mailbox-545/
URLs in this post:
[1] Image: http://4.bp.blogspot.com/_m5i6pLhlNWU/TJzhND9BwsI/AAAAAAAADIM/EEl_bniSFCA/s1600/NHS.JPG
[2] Image: http://1.bp.blogspot.com/_m5i6pLhlNWU/TJzj2X6JVJI/AAAAAAAADIU/g85yMc2MiNw/s1600/MHPGOLDR.JPG
[3] finance.yahoo.com: http://finance.yahoo.com/news/Pace-of-new-home-sales-second-apf-16855107.html?x=0&sec=topStories&pos=4&asset=55c8d4d8f573b0f0c61b14d13040a613&ccode
[4] More…: http://edegrootinsights.blogspot.com/2010/09/pace-of-new-home-sales-second-slowest.html
[5] Click here to view the report…: http://jsmineset.com/wp-content/uploads/2010/09/Gold.pdf
Click here to print.