WP/AP: Sales of New Homes Hit Record Level in June (economy has momentum)

[DeepModem Mom]

Sales of New Homes Hit Record Level in June
By MARTIN CRUTSINGER
The Associated Press
Wednesday, July 27, 2005; 5:23 PM


WASHINGTON -- Sales of new homes soared to an all-time high in June as the red hot housing market kept sizzling.

The Commerce Department reported that single-family home sales jumped to a record annual pace of 1.37 million units in June, up 4 percent from May.

Meanwhile, orders for big-ticket manufactured goods posted a surprisingly strong 1.4 percent increase last month, and the Federal Reserve's latest snapshot of business activity showed the economy was steaming ahead in June and early July.

Analysts said the trio of reports Wednesday showed an economy with plenty of momentum headed into the second half of this year....

***

Federal Reserve Chairman Alan Greenspan told Congress last week that one area where there are concerns is the housing market, which he described as being in the grips of "speculative fervor" in parts of the country....


http://www.washingtonpost.com/wp-dyn/content/article/2005/07/27/AR2005072700588.html

[AndyTiedye]

1. Momentum Is Not Always a Good Thing

[DeepModem Mom]

2. Uh-oh!!! nt

[brigidshine]

3. .

skeered.

[DemocracyInaction]

4. They are loaning money if you can make an "X" on the line

I remember Japan of like 20 years ago. They were burying us alive. Then they collapsed and still haven't recovered. Problem: they were loaning like a drunken sailor in a whore house. The bad investments collapsed and so did Japan. In about 10 years we are going to have a whole shitload of middle class Americans whose jobs are being outsourced and/or attacked by cheap labor who are going to lose everything they have AND cannot get out of it via bankruptcy (remember the new law) whose lives will be forever destroyed, who will have to live in all that real estate that the wealthy will buy up and RENT to them and who will not be able to buy a bar of soap on credit ever again. Then stand back---when the yuppies get fucked, the fucked might just wake up and fight.

[barb162]

6. The yuppies have and are being

fucked the last few years through job losses. Yuppies who were making 6 figures are now working at Starbucks. No awakening yet

[alfredo]

5. It's not what you can buy, it's

what you can pay for. Will you have a good paying job 5 years into your 30- or 40 year mortgage, or will you be working part time a Wal Mart? If you fall on bad luck, will the government allow you to go bankrupt?

[area51]

7. the "economy has momentum".

Sure it does -- negative momentum. We're in the 2nd Great Depression.