Wednesday, October 19, 2011

Housing Starts Soar 15%, Confusing Keynesians Once Again

Housing starts rose 15 percent,  a seasonally adjusted rate of 658,000. That blew away Keynesian  econometric forecasts of an increase to a 590,000-unit rate.

Starts surged in September at their fastest annual pace in 17 months on a big increase in groundbreaking for multi-family units.Housing starts for buildings with two or more units climbed a remarkable 51.3 percent to a 233,000-unit rate. Single-family home construction increased 1.7 percent to a 425,000-unit pace.

Bottom line: Bernanke is printing money, it is getting into the system and impacting the economy. Krugman and crew will be scratching their beards over this one.

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