As Tyler Durden of Zerohedge aptly named them, the U.S. Department of Truth, has mislead the public on the housing surge.The government came in with an estimate on housing starts that was higher than the best estimate. The government didn’t bother to explain that ALL the surge comes from the meaningless 5+ multi-family units which jumped by a whopping 25% sequentially, and which as everyone in the industry knows are nothing but inventory padding by homebuilders who “build just to build.” There was actually no improvement but Obama got his soundbite and that is what will be remembered.
Take a look at Tyler Durden’s chart from Zerohedge which proves it –
The government and the media are also touting the improved employment numbers. Not so says Gallup.