Tuesday, October 20, 2009

Housing Permits Fall

New building permits, which give a sense of future home construction, fell 1.2 percent to an annual pace of 573,000 units in September, the Commerce Department said.

This is the biggest percentage decline since April.

Media outlets are calling this an "unexpected" fall. It isn't, of course, if you have been following money supply growth, or the lack thereof.

Housing is one of the largest beneficiaries of money printing. If the money isn't printed, the money isn't there to support expanded money printing.

The Commerce Department also said that housing starts rose 0.5 percent to a seasonally adjusted annual rate of 590,000 units. This is below market forecasts for 610,000.

You are hearing the not too distant drums of the double-dip recession.

1 comment:

  1. did you see Mauldin's recent Front Line missive to that effect(double dip recession?)