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Housing Recovery?

Zero-Hedge argues that we’re really just pouring money into a sinkhole right now:

However, back on earth, where things really matter, housing is a major contributing component to long term economic recovery.  Each dollar sunk into new housing construction has a large multiplier effect back on the overall economy.  No economic recovery in history has started without housing leading the way.  So, yes, housing is really just that important and we should all want it to recover and soon.  The calls for a bottom in housing now, however, may be a bit premature as I will explain.

He’s been more bearish on housing for a while, especially given the optimism over at Carpe Diem and Calculated Risk, not exactly Obama shills.  Still, caution is always in order, and elsewhere he does make a good point about not relying on NAR stats to make judgments.

Posted in Business, Economics.

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