The inventory of new housing supply continues to increase as the July numbers show the pace to be at 12.5 million units to clear. The gap of supply/demand broadens, and puts pressure on construction and downward pricing. Merrill Lynch research estimates it will take until 2015 before the normalization of the housing market occurs. This is exacerbated by government tinkering in business affairs and the economy, when the current administration looks to the government as the all-knowing, all-seeing, all-defining guru of the markets. Nothing could be further from the case.

It IS easy to say, 'The government is not the answer to our problems, it IS the problem", yet that is where this country, and indeed the world, is at. The more business is interfered with, and the more individuals' creativity is stifled, the less impulse there is to invest in growth, mainly from the fear of burdens placed or to be placed on the job creators.

Government should be hell-bent on incentivizing the private economy, not detracting from it. This recession, as in others, have been 'engineered', if you will, by power-hungry politicians furthering agendas through more power and control - and businesses and individuals respond accordingly.

See the attached article by The Pragmatic Capitalist for more insight as to the housing supply/demand trend, and the need to stabilize and reverse it:

http://tinyurl.com/253kuh9

Share this post

Comments

Walter Pearson