Tuesday, July 19, 2011

New Construction

The Commerce Department reported(.pdf) that U.S. housing starts jumped 14.6 percent to an annual rate of 629,000 and that permits for new construction rose 2.5 percent to a 624,000 rate. As noted here many times over the last couple years, despite what you’ll read today, this really isn’t a big deal since the housing market is extremely depressed, homebuilder stocks now the equivalent of 2002-era dot.com stocks for reasons made clear below.


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