Housing Starts Rate Goes Down. This is a GOOD thing


As usual, a decline in housing starts was reported last week as “further evidence of weakness” and a “bleak thing. As we’ve pointed out before, however, supply and demand laws make it clear that when you have an oversupply, as America does now, one of the best things you can do is stop building. From that point of view, I’m disappointed the number of starts isn’t dropping faster. We could really benefit from a few quarters where nothing was started at all!

Here’s an article that makes some good points on this issue.


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