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Recovery Hopes Surge On Record New Home Sales

Tyler Durden's picture


...Just the wrong kind of record. At just 250,000, this was the lowest annualized new home sales number ever. So on one hand you have a TV clown tell you the housing market bottomed in August 2008, on the other you have a pathological tax cheat Welcoming all to the Recovery, and on the mutated third hand (thank you Fukushima), reality continues to indicate that the biggest depression in history persists without abating.



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Wed, 03/23/2011 - 10:16 | 1089800 Flakmeister
Flakmeister's picture



Uh, no, you don't splat till you hit bottom....

Wed, 03/23/2011 - 10:20 | 1089824 AN0NYM0US
AN0NYM0US's picture

not so fast

Naples Rises From Florida Housing Swamp as Wealthy Buyers Return



(the only thing missing from the article is the dude with the sandwich board at a busy intersection trying to sell is million dollar home at half off

Wed, 03/23/2011 - 10:22 | 1089843 66Sexy
66Sexy's picture

more like 'boink'


head hitting the roof: a.k.a THE TOP

Wed, 03/23/2011 - 10:52 | 1090081 camaro68ss
camaro68ss's picture

growing a 3rd hand is a bitch

Wed, 03/23/2011 - 11:41 | 1090486 Harlequin001
Harlequin001's picture

apparently it's quite easy now in Tokyo...

Wed, 03/23/2011 - 10:32 | 1089880 hamurobby
hamurobby's picture

On the Treasure coast, you can buy a median home for 50-70% off the 2005 highs. Honestly you can buy them (existing homes) well below replacement, not a bad buying opportunity with the baby boomers retiring. Now if they could just find buyers for their northern homes...

Wed, 03/23/2011 - 11:55 | 1089951 Flakmeister
Flakmeister's picture

Go ahead fill your boots...

The only way real estate makes sense is if your fixed rate mortgage is hyper-inflated away while your property taxes are flat... 


Edit: The other possible way is do a move sideways, assuming you have a large amount of equity, replace your existing digs with something that will meet your future needs. Forget about any capital gains etc...

Wed, 03/23/2011 - 12:24 | 1090719 TruthInSunshine
TruthInSunshine's picture

HOA fees in some formerly exclusive areas in Miami have risen 200% to 300% due to all the empty units in multi unit high rises (fixed costs on large buildings suck and tend not to discern as to whether the building is 90% or 40% occupied), and they weren't cheap originally.

So, not only can you not get hurricane insurance, but take the $7,000 that you were paying in HOA fees yearly before and at least double them, and then, oh yeah, add another $23,000 a year in property taxes.

Carrying costs of $30,000 yearly in just taxes and HOA fees for a oceanfront (or view) condominium that has a new real value 50% less than it did 4 years ago? It's all good.


Wed, 03/23/2011 - 12:43 | 1090840 Flakmeister
Flakmeister's picture

Good point, HOA fees and the like will not deflate...

Wed, 03/23/2011 - 13:03 | 1090940 ElvisDog
ElvisDog's picture

You're shitting me. $23K in property taxes? That would be reason enough not to buy a condo in FLA.

Wed, 03/23/2011 - 14:07 | 1091169 cornedmutton
cornedmutton's picture

You'd really love California then as may new developments here include standard property taxes, HOA, and something called Mello-Roos, named after the two state bureaucrat assholes that drafted the legislation in 1982:

"A Mello-Roos District is an area where a special property tax on real estate, in addition to the normal property tax, is imposed on those real property owners within a Community Facilities District. These districts seek public financing through the sale of bonds for the purpose of financing public improvements and services.  These services may include streets, water, sewage and drainage, electricity, infrastructure, schools, parks and police protection to newly developing areas. The tax paid is used to make the payments of principal and interest on the bonds."

Makes you wonder the purpose of property taxes when Mello-Roos covers all the public utility infrastructure normally provided by the city.  Seems to me it's just an end-run around CA State Proposition 13 (passed in 1978) which limited property taxes increases from year-to-year.  Since they couldn't raise the rate they just came up with a new "tax" by requiring all real property owners within the district to sign on as payers for the bond that had been sold to finance the city's ongoing operations. Ta-da! No more maximum property tax restriction!

A couple of years ago I was considering buying a new home near Sacramento that included all three of these payments. The P&I on the mortgage would have been about $1,500 with an additional $700/month in tax and HOA dues. Suffice it to say, we did not buy.

The BEST part was that there was no assurance made the additional payment would go away, even if the 30-year bond was eventually paid off entirely.  And the HOA fees were projected to increase by 3~5% per year!

More here:


Wed, 03/23/2011 - 14:16 | 1091242 TruthInSunshine
TruthInSunshine's picture

Have there been any legal challenges to Mello-Roos Districts yet?

As you are aware, just because the state does something doesn't imply it can or will withstand judicial scrutiny.

That is total bullshit.

Wed, 03/23/2011 - 14:20 | 1091269 cornedmutton
cornedmutton's picture

Roger on the bullshit. One of the reasons we stayed away. We saw it for what it was.

I have no idea what can be done, if anything, though. To be honest, this state is so far past the point of no return, I'm not sure if it's even worth fighting anymore.

Wed, 03/23/2011 - 13:02 | 1090934 ElvisDog
ElvisDog's picture

I got news for you - the Baby Boomers are broke or enough of them are/will be broke so they won't be buying those Florida retirement homes. I would stay away from any investment strategy that relies on the untapped wealth of the Baby Boomers.

Wed, 03/23/2011 - 10:33 | 1089908 ptoemmes
ptoemmes's picture

Yeah, here in SouthEast Florida too:

But note that they did change the way sales are reported. 




Wed, 03/23/2011 - 10:32 | 1089895 Cindy_Dies_In_T...
Cindy_Dies_In_The_End's picture

Hey everybody:

Since you can't send the Tylers prostitutes, why not send them some cash for all their hard work. hit that Paypal button!


Seriously, our fearless Tylers have not left their keyboards because of all the trainwrecks out there, so send $20 or so today. It won't hurt and you know you want to.


Its either that or the red pill.

Wed, 03/23/2011 - 10:44 | 1090006 malikai
malikai's picture

I took both pills and washed em down with a shot of diesel. My tummy hurts.

Wed, 03/23/2011 - 10:57 | 1090113 andybev01
andybev01's picture

I don't even give to NPR, but for you I shelled out $30.00.

when can I expect my tote bag and bumper sticker ;-)

Wed, 03/23/2011 - 12:54 | 1090898 TruthInSunshine
TruthInSunshine's picture

Cindy - just a suggestion, but maybe ZH can post an anonymous method of contributing. I happen to know from experience that many people with means and resources cherish their privacy.

Wed, 03/23/2011 - 16:16 | 1091963 Kayman
Kayman's picture


How about getting a drop box.

Wed, 03/23/2011 - 10:41 | 1089988 oh_bama
oh_bama's picture

New home sales lower because

Wed, 03/23/2011 - 10:58 | 1090116 andybev01
andybev01's picture

Crap; it's snowing again in the N.E.

Wed, 03/23/2011 - 10:17 | 1089801 slow_roast
slow_roast's picture

Cramer's advice is financial cyanida.

Wed, 03/23/2011 - 10:18 | 1089812 Horatio Beanblower
Horatio Beanblower's picture

Caveat emptor.

Wed, 03/23/2011 - 10:33 | 1089924 Cash_is_Trash
Cash_is_Trash's picture

Caveat viewer.

Wed, 03/23/2011 - 11:34 | 1090430 TheMerryPrankster
TheMerryPrankster's picture

Caveat Empire

Beware of empires - especially financial empires.

Wed, 03/23/2011 - 11:45 | 1090498 andybev01
andybev01's picture

"Caveat Empire"...FTW

Wed, 03/23/2011 - 10:21 | 1089833 John Law Lives
John Law Lives's picture

Anyone who regularly listens to Cramer should be taken out by natural selection.

Wed, 03/23/2011 - 10:30 | 1089887 Gene Parmesan
Gene Parmesan's picture

You don't still think that natural selection is allowed, do you?

Wed, 03/23/2011 - 10:44 | 1090009 oh_bama
oh_bama's picture


DID I TELL YOU BTFD a fwe days ago???


Wed, 03/23/2011 - 11:35 | 1090440 defn8Dog
defn8Dog's picture

Pongee pit death awaits those who buy on GS "conviction buy" recommendations.  

Wed, 03/23/2011 - 13:46 | 1091119 MallaKite
MallaKite's picture

Its a GS convicted "Buy"

Wed, 03/23/2011 - 10:42 | 1089997 oh_bama
oh_bama's picture

You are so mean!!


Wed, 03/23/2011 - 10:50 | 1090052 cosmictrainwreck
cosmictrainwreck's picture

*error* he's an asshole. to paraphase an old saw: "ya don't have to be an asshole to be at CNBS....but it helps"

Wed, 03/23/2011 - 10:16 | 1089803 101 years and c...
101 years and counting's picture

i've said it all along.  this is the greatest depression.

Wed, 03/23/2011 - 10:22 | 1089842 drbill
drbill's picture

No, the next time the world forgets what's real money and allows (central) bankers to control "money" via fiat, will probably be worse than this depression. That is assuming we don't all wind up in the next stone age.

And to think I used to be an optimist...

Wed, 03/23/2011 - 10:17 | 1089809 NoBull1994
NoBull1994's picture

This is great news.  Disinflationary!  More QE, please!

Wed, 03/23/2011 - 10:36 | 1089947 Hollywood
Hollywood's picture


Wed, 03/23/2011 - 10:45 | 1089980 depression
depression's picture

QE-3 slam dunk  !

line up the cheerleaders !


Wed, 03/23/2011 - 10:55 | 1090094 oh_bama
oh_bama's picture

YES!! FINALLY people on this blog understand!!


Wed, 03/23/2011 - 13:06 | 1090955 ElvisDog
ElvisDog's picture

Which is funny, because QE3 would further depress home prices, because home prices are a function of monthly payments. If the sheeple's gasoline/food costs go up by 50% due to QE3 that's less money left over to make the monthly mortgage payment.

Wed, 03/23/2011 - 13:49 | 1091121 oh_bama
oh_bama's picture

No you are not correct~~~


With QE3 everything will be JUST FINE!!

And people will be living happily forever and ever!!

DID YOU KNOW anythign about finance and economics?! HAVE YOU BEEN A PROFESSOR AT PLACES LIKE PRINCETON???


Wed, 03/23/2011 - 13:28 | 1091043 andybev01
andybev01's picture

Shhhh...use your indoor voice.

Wed, 03/23/2011 - 10:18 | 1089810 John Law Lives
John Law Lives's picture

I wonder what the Great Chairsatan will have to say about this.  I suppose QE3 is a certainty now...

Great Chairsatan = enemy of the world

Wed, 03/23/2011 - 10:19 | 1089811 ZippyBananaPants
ZippyBananaPants's picture

Did anyone see Biggest Loser last night? 

Wed, 03/23/2011 - 10:36 | 1089952 Sancho Ponzi
Sancho Ponzi's picture

I don't recall Obama speaking last night.

Wed, 03/23/2011 - 10:46 | 1090021 MsCreant
MsCreant's picture

He meant Ben. I know the competition is pretty tight, so I could see where you would make that error.

Wed, 03/23/2011 - 10:19 | 1089813 No One
No One's picture

awesome! so now the Realtors can scream "BTFD" too.

Wed, 03/23/2011 - 11:03 | 1090164 smithcreek
smithcreek's picture

They've been screaming that for a couple years now.  I pity the fools that jumped on the free government money.  They're only going to get more underwater over the next year.

Wed, 03/23/2011 - 11:39 | 1090456 TheMerryPrankster
TheMerryPrankster's picture

"There has never been a better time to buy a home than right now" said Lawrence Yun, NAR chief economist, as he tied a rope with a rock attached to it around his neck and prepared to leap off a bridge.

Wed, 03/23/2011 - 11:57 | 1090580 Max Cynical
Max Cynical's picture

I wonder how many buyers are still high on their $8K tax credit...

Wed, 03/23/2011 - 10:18 | 1089815 Cdad
Cdad's picture

Let me guess....the criminal syndicate known as Wall Street is on the verge of upgrading.....home builders? 

Wed, 03/23/2011 - 10:20 | 1089832 No One
No One's picture

of course they are. This number can't get much lower... right? I want to see how NAR spins this.

Wed, 03/23/2011 - 10:19 | 1089819 Careless Whisper
Careless Whisper's picture

i'm just wondering why any new homes are being built at all. is there a shortage of homes?


Wed, 03/23/2011 - 10:24 | 1089845 Wakanda
Wakanda's picture

New homes are for people fleeing Japan?

Wed, 03/23/2011 - 12:05 | 1090637 Bananamerican
Bananamerican's picture

i've thought that...

instead of a potato famine they have a....clean water, air and food famine....

where would a japanese diaspora end up?


Wed, 03/23/2011 - 10:29 | 1089884 umop episdn
umop episdn's picture

No shortage of homes; just a shortage of other jobs for builders to do. Also, many have already invested in permits, land, electric hookups, etc. A house that might sell for a loss may be better for them than getting no return on their previous investments.

Wed, 03/23/2011 - 10:19 | 1089821 markmotive
markmotive's picture

Question: why would anyone in their right mind build a new house when we're swimming in inventory?

Wed, 03/23/2011 - 10:26 | 1089856 The Profit Prophet
The Profit Prophet's picture

Answer: Nobody wants to enter the MERS infected swamp trying to get a clear title...

(sorry for the fat-fingered junk....just meant to reply).

T.E.I.N. everyone!

Wed, 03/23/2011 - 10:33 | 1089905 tmosley
tmosley's picture

Hit junk again and it will remove it.

Wed, 03/23/2011 - 11:48 | 1090521 andybev01
andybev01's picture

Hint: if you hit 'junk' again, it goes away.

Wed, 03/23/2011 - 10:26 | 1089857 Bastiat
Bastiat's picture

Maybe because a new house would have a clear title?

Wed, 03/23/2011 - 12:07 | 1090647 Bananamerican
Bananamerican's picture

and bitchen new radioactive drywall from china

Wed, 03/23/2011 - 10:25 | 1089859 disabledvet
disabledvet's picture

would you like me to answer that?

Wed, 03/23/2011 - 10:30 | 1089882 Dr. No
Dr. No's picture

I wondered that too.  But then again, it is consistent with other aspects of our modern society.  Home builders build homes.  Car builders build cars.  Once a small business grows out of sole proprietorship, they succumb to the number one objective of a business: to stay in business.  A guy who runs a lemonade stand packs up shop when business doesn’t exist.  A living breathing larger business entity will try to stay in business, despite what the market signals.  GM? AIG? take your pick of these zombie businesses who mortgages themselves to the rafters just to keep the lights on one more day.  Home Builders are no different.  The small guys have stopped.  But the developers keep developing because that is what they do.

Wed, 03/23/2011 - 10:37 | 1089935 cosmictrainwreck
cosmictrainwreck's picture

excellent analysis. unfortunately, exactly right. also why gubbmint will always increase. more indications of why total collapse is the only "solution", i.e. what will cause any changes. well, never say "never" or "only" but you get my idea

Wed, 03/23/2011 - 10:50 | 1090071 Dr. No
Dr. No's picture

Gov will always increase since Bureaucrats are promoted when they manage bigger budgets and more people.  A regional manager will always ask for more money, more staff since this is the sure way to promotion.  Lean departments?  rare.  This was underscored when I went through security at the second airport (not the international) in my city.  I am very serious when I say there were more TSA agents than passengers.  I can only imagine how happy the TSA manager was, bigger budget, more machines, bigger office.

Wed, 03/23/2011 - 10:42 | 1089907 hedgeless_horseman
hedgeless_horseman's picture

Upgrades for the new normal? 

  • Rural location
  • Upwind from nuclear plants on fault lines
  • Thick concrete walls
  • Metal roof
  • Door Jam Armor throughout
  • Safe room
  • Courtyard windows
  • Well (2)
  • Septic
  • Bigger garden
  • Root cellar
  • PV, wind power, or both
  • 1,000 gal subterranean propane tank (2)
  • 500 gal diesel tank (2)
Wed, 03/23/2011 - 10:53 | 1090088 Agent P
Agent P's picture

But does it have a three car garage and granite counter tops?

Wed, 03/23/2011 - 11:49 | 1090539 Don Birnam
Don Birnam's picture

I don't see the center island kitchen and custom ThermoSpa. No go. In any case, that Survivorman list is a bit long -- how to pay for it all ? Without a HELOC, no go.

Wed, 03/23/2011 - 11:40 | 1090473 Founders Keeper
Founders Keeper's picture


I like how you think ;)


Wed, 03/23/2011 - 11:46 | 1090509 TheMerryPrankster
TheMerryPrankster's picture

If you put in 2 wells do you need 2 separate water tables to drill into? Two thousand gallons of underground propane will make a rather nice bomb. I'd make sure they are buried a great distance away from living areas. Solar and wood will last longer and are safer if you have the room to grow a wood lot and the sun (solation) for PV.

Plus no need for FBI dressed up as delivery men coming by to fill your diesel and propane tanks.

Wed, 03/23/2011 - 12:27 | 1090742 velobabe
velobabe's picture

wondering if states will give two well drilling permits at one time. i guess if you have a lot of acreage they might. i know i had to drill a new well and my state made me cap an old one and they took back that permit when issuing me a new one. also it was only for domestic water use. meaning you can't water your garden with this water. i suppose people use it for outside applications. but this was on 2 acreages, and i would think the state would allow watering grass and gardens and trees. so it is not a given that even with two wells you are going to be able to use the water, watering.

Wed, 03/23/2011 - 16:30 | 1092055 TheMerryPrankster
TheMerryPrankster's picture

I would think for most folks (non agra business) it would make more sense to have 1 well and a substantial water storage tank system - say 10,000 gallons or so. That way if the well isn't fuctioning you have several months to a year to get things fixed. If off the grid sustainability were an issue, I'd buy a spare water pump before I'd drill two wells, they can get mighty expensive if you have to go deep and through a lotta rock. A 10k gallon water tank, would likely cost a lot less than a backup well.

A well and a lake,now there is a nice bit of property. You don't have to mow a lake.

Wed, 03/23/2011 - 10:41 | 1089985 Flakmeister
Flakmeister's picture

A new house makes sense if it is energy efficient, i.e. it has the ability to go partially off grid. Last time I looked, this is not what is being built...instead we are getting more crappy designs, albeit, somewhat higher efficiency but larger sizes so the energy required is flat....

Give me well integrated solar panels for electricity and/or hot water over a goddam granite counter top any day....

Wed, 03/23/2011 - 10:57 | 1090117 Dr. No
Dr. No's picture

My father, an old time carpenter, told me a few years back, most of the technology in home building is intended to increase production productivity.  Cheaper materials, engineered so one low skilled worker can install in a couple of hours to replace a journyman who would take a day.  Sure there are some energy technologies being added, but take a look at that fiber board.  It has some metal facing on it to reflect heat, but overall the board was made cheaper so it could be unloaded from the truck by a teenager. 

Slight of hand.

Wed, 03/23/2011 - 11:12 | 1090224 aheady
aheady's picture

+84 (Lumber)

Wed, 03/23/2011 - 11:26 | 1090371 Flakmeister
Flakmeister's picture

I am aware of the the trend to commoditized housing... We got the biggest bio-degradable bubble in the history of the world, most of the crap that has been built in the past 10 years will resemble Tombstone AZ in 15 years...

I was trying to be as generous to the current building practices as I could reasonably be....

Wed, 03/23/2011 - 11:36 | 1090434 Dr. No
Dr. No's picture

Bio-bubble.  you are right.  Houses are disposable these days.  There is good reason new houses have a premium over houses 10 yrs old.  Houses built during the bubble have a 15 yr design life.

Wed, 03/23/2011 - 12:31 | 1090758 Agent P
Agent P's picture

If that is true, I would expect a lot of defaults on 30yr mortgages over the next several years.

Wed, 03/23/2011 - 12:39 | 1090805 Flakmeister
Flakmeister's picture

It is...and there will be. One caveat though. those owners that have fixed mortgages *and* have earnings that will inversely track with the declining dollar will do fine...that covers about 5% of the population :) 

I predict Phoenix, Las Vegas to become wastelands....

Wed, 03/23/2011 - 12:26 | 1090734 Don Birnam
Don Birnam's picture


Wed, 03/23/2011 - 11:07 | 1090201 smithcreek
smithcreek's picture

A lot of the new houses built around my area are "Section 8 McMansions."  Huge houses with vinyl siding that looks like it belongs in the projects.

Wed, 03/23/2011 - 12:57 | 1090914 TruthInSunshine
TruthInSunshine's picture

It's called denial, and it's not just a river in Egypt.

I know builders pulling permits right now on spec builds because they 'hope' and some even 'expect' that things will be as not-so-sucky as last spring (which did see a bump over 2009, government crack cocaine induced and what have you).

Wed, 03/23/2011 - 10:21 | 1089823 Arttrader
Arttrader's picture

Must have been the snow, rain, fog, humidity, etc.

Wed, 03/23/2011 - 10:20 | 1089825 oogs66
oogs66's picture

C'mon Tyler, don't you get it.  Last month's data was revised UP so clearly this is not a bad number it is just bad data that fails to reflect the strength of the recovery, so stocks can ignore it!

Wed, 03/23/2011 - 10:27 | 1089865 Cleanclog
Cleanclog's picture

Obscured by snow.

Wed, 03/23/2011 - 10:20 | 1089828 ShankyS
ShankyS's picture

I'm seriously considering opening a demolition company. The millions of homes that will be bulldozed in the coming years will be astounding. LOL - at this rate the tear down value for the copper and raw materials inside will be worth more than the RE the home sits on.

Wed, 03/23/2011 - 10:30 | 1089881 Quintus
Quintus's picture

I suspect anything of value will have been looted long before the demolition crew get on site.

Wed, 03/23/2011 - 10:44 | 1090010 Hollywood
Hollywood's picture

Count me in, let me know when you start-up.  But instead of going through all the trouble of trying to make your company succeed...

1. Start the company.

2. Screw everything up.

3. Get a bailout.

4. Manage your own bailout under no supervision.

5. Restructure company.

6. Company fails again.

7. Get a bailout...

Oh wait a minute, this could never happen in real life.  God luck with your company, though.

Wed, 03/23/2011 - 11:16 | 1090265 oh_bama
oh_bama's picture


YOU can do this only if you are KOSHER!! BUT ARE YOU?

Wed, 03/23/2011 - 10:44 | 1090011 John Law Lives
John Law Lives's picture

Washington DC is a good place to start.

Wed, 03/23/2011 - 10:51 | 1090078 Temporalist
Temporalist's picture

Bulldozers are expensive and need gas.  Just hire some unemployed people and give them tools there are plenty of them around.

Wed, 03/23/2011 - 11:17 | 1090258 MachoMan
MachoMan's picture

That scenario only works when you're not competing against the government for unemployment benefits/welfare...  Why the hell would anyone not rather sit at home for any more than I would pay them for demo work?

Wed, 03/23/2011 - 11:56 | 1090583 Temporalist
Temporalist's picture

So they can get paid for exercise instead of paying for a gym membership?

And the 99 weekers time is up.

Besides, taking anger out by busting things up is carthartic.  You can perhaps get a grant for therapeutic remedy of stress.

Wed, 03/23/2011 - 20:31 | 1092930 GreenSideUp
GreenSideUp's picture

The copper and anything of value has been long ago stolen from most every vacant home.  

Wed, 03/23/2011 - 10:22 | 1089831 Cleanclog
Cleanclog's picture

Meanwhile, the President of a realty firm out in the San Francisco Bay Area says "“If you start looking around in any fine neighborhood in California, about a quarter of homeowners are not making payments,” says Perry.

Maybe he meant 25% of homes on market in that segment.   Even so, that's still a lot.  If it is really among all upper end homes, then that should be HEADLINE news.  More   

Wed, 03/23/2011 - 10:22 | 1089835 66Sexy
66Sexy's picture

one step closer to the top: bullish ZH headline.

Wed, 03/23/2011 - 10:22 | 1089836 MsCreant
MsCreant's picture

Gold up! 1438

Wed, 03/23/2011 - 10:25 | 1089850 Zero Debt
Zero Debt's picture

Yes...a big move may be imminent..

Silver establishing support at 36.5....

Wed, 03/23/2011 - 10:27 | 1089860 AN0NYM0US
AN0NYM0US's picture

increased demand for faucets

Wed, 03/23/2011 - 10:32 | 1089913 Snidley Whipsnae
Snidley Whipsnae's picture

Looks to be a strong move... $1439.60

Silver...  $36.64

Print Ben, Print! 

Wed, 03/23/2011 - 10:34 | 1089916 Bastiat
Bastiat's picture

Silver through 36.80 too.


Wed, 03/23/2011 - 10:44 | 1089999 MsCreant
MsCreant's picture

Up, up, and away. Holy hell.

Wed, 03/23/2011 - 10:25 | 1089849 hugovanderbubble
hugovanderbubble's picture

Triple mega dip¡¡¡¡¡¡¡

Wed, 03/23/2011 - 11:51 | 1090542 Harlequin001
Harlequin001's picture

Is that an ice cream?

Wed, 03/23/2011 - 12:20 | 1090703 Bananamerican
Bananamerican's picture

that's me and the wife sunday morning

Wed, 03/23/2011 - 10:24 | 1089851 doomandbloom
doomandbloom's picture

i blame the snow...i mean the earthquake...i mean the radiation....i mean the dead fish

Wed, 03/23/2011 - 10:59 | 1090125 depression
depression's picture

you forgot the 3 wars and the new oil slick

if we ever got any good news ever again the market would crash instantly

climbing the proverbial wall of worry to infinity and beyond

Wed, 03/23/2011 - 12:01 | 1090617 Temporalist
Temporalist's picture

Don't forget the U.S bailouts, fraud, injustice, lack of accountability, ponzi finance, Euro bailout, inflation, poverty, famine, unemployment, food stamps, housing plunge, rebellion...


Those Chilean miners are still the feel-good story everyone is happy about?

Wed, 03/23/2011 - 10:25 | 1089855 Tulli
Tulli's picture

"Downside risks persist, warranting the continuation of exceptional measures to support the economy. In the long run, inflation risks remain subdued. In light of these data, the FRB has decided to apply the funds received from the sale of the Maiden Lane Porfolio at a proffit, to execute permanent open market operations designed to promote increased employment and financial stability".


QE ad nauseam...

Wed, 03/23/2011 - 10:33 | 1089921 Republican Lackey
Republican Lackey's picture

Unless the Fed wants to put about 50 trillion on it's balance sheets, QE(n+1) will do jack.

Wed, 03/23/2011 - 10:55 | 1090095 Wynn
Wynn's picture

50 tril of new monoply money won't do jack either

Wed, 03/23/2011 - 10:26 | 1089858 Rogerwilco
Rogerwilco's picture

Depression? That's such a harsh word Mr. Durden, perhaps you should consider walking back and selecting something more appropriate to describe our ongoing recovery. We'll forgive the mistake in this instance, but any repeat of this language might garner the attention of authorities ever vigilant for domestic terrorists.

Wed, 03/23/2011 - 10:27 | 1089861 I am Jobe
I am Jobe's picture

Must be the weather . Yeap, blame it on Mother Nature. WTF, billions of dollars later and this is the crap we get. I could have done it for less.

Wed, 03/23/2011 - 12:24 | 1090723 Bananamerican
Bananamerican's picture

yea, but could you have done it for MORE?

Wed, 03/23/2011 - 10:27 | 1089864 SheepDog-One
SheepDog-One's picture

Certainly all 'better n expected' Im sure, and Kudlow will probably say within the hour 'WHEW at least the financial devastation is not as bad as the americans total devastation of their lives'.

Wed, 03/23/2011 - 10:26 | 1089866 papaswamp
papaswamp's picture

coupled with neutron beams, gunfire and bombs falling, I'm feeling rather bullish. Isn't that the way it works now? Disaster is positive?

Wed, 03/23/2011 - 10:28 | 1089867 Kina
Kina's picture

The headline was to keep the hopium crowd happy whilst really being ZH cutting sarcasm.

Wed, 03/23/2011 - 10:27 | 1089868 Republican Lackey
Republican Lackey's picture

The volume of sales is low and the price keeps dropping. Until volume picks up and prices start to rise we haven't hit bottom. Basic market theory. BTW, Is this report inflationary too?

Wed, 03/23/2011 - 10:28 | 1089872 John McCloy
John McCloy's picture

What else is to be expected when we find out things like Detroit's population has decrease by 25% .

  The last 3 decades and Fed presses have squeezes all of the blood out of the American consumer and it all ended in 2008 after they did not to prevent the fraudsters from luring people into buying homes that had 100% inflated markups because of easy credit. Now they are left with debt, declining wages and eroding job opportunities. People are buckling down and learning to live within their means again and Americans will eventually return to that famous 10% savings rate that allowed for natural credit expansion through saved capital.

     In the meantime they can look forward to higher prices in the shit they absolutely need until Ben allows the markets to collapse again. Americans may start feeling the recovery when those homes priced at $220,000 can be gotten for $125,000. In order for America to recover the Banking institutions must collapse.

Wed, 03/23/2011 - 10:30 | 1089885 Republican Lackey
Republican Lackey's picture

Ben will not have a say in the collapse. There was so much damage done by Wall Street, It's like Ben pissing on Fukishima to  cool the reactors. We're not talking measely billions here.

Wed, 03/23/2011 - 10:53 | 1090076 Cdad
Cdad's picture


Exactly.  Spot on.  No need to calculate PEs, talk about stimulus, fret about jobs...the problem is in the banks.  It always has been, still is, and shall continue to reside there until Ben Bernanke is removed from office, his presses turned off, and bank shares are marked to the true value of their assets.

Until then, capital will not form in a banking system that is as corrupt as ours other than Bernanke bucks, of course.  We will see this truth coming soon to our Treasury bill market soon...and it will eventually overcome the banking cartel.  And there will be great difficulties in the wake, hardship...but it is THE ONLY WAY OUT OF THIS MESS!


Wed, 03/23/2011 - 13:04 | 1090948 TruthInSunshine
TruthInSunshine's picture

Bernankicide has known all along that the banks are cosmic black holes in which all dissappears.

This is one of the primary reasons he allowed them to mark assets to fantasy, plowed them with digital fiat, and gave them a new working model, ala the Fed Spread, to generate revenue, as the old banking model of generating revenue was broken.

The problem Bernankicide has is that doing all that he has carried and still carries incredibly damaging shocks to the economy, as we've seen with commodity markets and malinvestment in equity markets, while the jobs data, home sales data, and many other critical parts of the economy deteriorate (in large part because Bernankicide is interfing with price equilibrium and price discovery; his interference distorts prices and supply/demand curves).

So, sooner or later, Bernankicide or someone who holds veto over him will have to decide between the banks and the rest of the economy. He can't save both.

It's a matter of time before conditions force that decision.

Wed, 03/23/2011 - 15:00 | 1091536 SilverBaron
SilverBaron's picture

Americans will return to that 10 percent savings rate, but what is 10 percent of minimum wage.  Can you even save food stamps?

Wed, 03/23/2011 - 10:27 | 1089875 disabledvet
disabledvet's picture

I agree--perhaps "selective recovery continues" would be better....

Wed, 03/23/2011 - 10:29 | 1089883 Bansters-in-my-...
Bansters-in-my- feces's picture

USA Recovery....

Shortest joke I ever heard.

Wed, 03/23/2011 - 10:31 | 1089893 SheepDog-One
SheepDog-One's picture

I refuse to comply with anything from any bank, FED, or govt official from here on out, I consider all events going forward 'self defense'.

Wed, 03/23/2011 - 14:39 | 1091391 cornedmutton
cornedmutton's picture


Wed, 03/23/2011 - 20:27 | 1092919 GreenSideUp
GreenSideUp's picture


Wed, 03/23/2011 - 10:32 | 1089906 alien-IQ
alien-IQ's picture

Time for CNBC to revive a term they haven't used in a while. Watch for them to start saying that the "affordability index" is rising...which is, of course, very bullish.

Wed, 03/23/2011 - 10:57 | 1090107 Hollywood
Hollywood's picture

Bullish: The number wasn't zero. 

One of my favorites is... "activity" is seen rising.

Wed, 03/23/2011 - 10:34 | 1089914 Crispy
Crispy's picture

going to 180

Wed, 03/23/2011 - 10:33 | 1089918 Mae Kadoodie
Mae Kadoodie's picture

Care for Apple Pie with your McMansion?

Wed, 03/23/2011 - 11:54 | 1090572 andybev01
andybev01's picture

APPL pIe...

Wed, 03/23/2011 - 10:34 | 1089928 AlaricBalth
AlaricBalth's picture

The lowest new home sales number since the Commerce Department began keeping records in 1963.  February year over year prices dropped 8.9%. I guess that Ben Bernanke's prediction, over a year ago, that housing would be a " a helpful driver of national economic growth" was quite a bit off.

Wed, 03/23/2011 - 10:38 | 1089968 Republican Lackey
Republican Lackey's picture

When the foundation of capitalism is confidence, what would you like him to say?

Wed, 03/23/2011 - 10:44 | 1090014 onarga74
onarga74's picture

The foundation of capitalism is to destroy any signs of a middle class

Wed, 03/23/2011 - 11:38 | 1090452 AlaricBalth
AlaricBalth's picture

Freedom and confidence (trust) are the foundations of capitalism. Yet each of these bedrocks of our economic system are slowly being eroded by inept government coinciding with rigged markets and laws in favor of the oligarchs of our society. These "priviledged few" are amassing great fortunes at the expense of the middle class. The common people, who built this country, are slowly being downsized as their costs of living are being inflated beyond the ability to sustain themselves independently (thus 44 million people on food stamps). We are close to an inflection point where eventually the dynasts will come to the conclusion that the middle class is not essential to their financial agenda. As long as the bourgeoisie and the proletariat remain placated with their "Soma" and American Idol, the system will remain the same and polarization of our economy will accelerate.

I'm sorry, got on a rant... In answer to your question, I would like him to say, " As of this day, I hereby resign as Chairman of the FRB and would like to apologize for my transgressions against the American people..."

Wed, 03/23/2011 - 11:56 | 1090579 Harlequin001
Harlequin001's picture

Well said old stick, yet even were it so, still it would not stop...

Wed, 03/23/2011 - 13:08 | 1090969 TruthInSunshine
TruthInSunshine's picture

While I agree that Bernanke has the perverted notion (or his actions and lies suggest he does) that the foundation of capitalism is 'confidence,' I actually argue that it's actually set upon supply and demand, which is something the Bernankincide doesn't understand, as he has so completely thwarted price discovery and supply/demand equations, or that he doesn't care about.

Capitalism is not a CONfindence game. And telling lies won't bring it about or strengthen it, but do it harm.

Wed, 03/23/2011 - 11:29 | 1090391 Flakmeister
Flakmeister's picture

" a helpful driver of national economic growth"

Note that he did not assign a direction...

Housing will continue to drive things, right over a fucking cliff....

Wed, 03/23/2011 - 10:36 | 1089932 Catullus
Catullus's picture

Bullish. Increased spending on propaganda by nearly bankrupt print media to "this the best time to buy a home" articles. Bullish

Wed, 03/23/2011 - 10:37 | 1089945 Republican Lackey
Republican Lackey's picture

How can you use the  term "depression" when just yesterday you were using "stagflation"? 

Wed, 03/23/2011 - 12:34 | 1090772 False Capital
False Capital's picture

Stagflation when measured in fiat. Depression when measured in gold?

Wed, 03/23/2011 - 10:36 | 1089949 Fix It Again Timmy
Fix It Again Timmy's picture

Keep in mind that "Charlie don't surf" and "unemployed people and people on food stamps don't buy homes".

Wed, 03/23/2011 - 11:53 | 1090565 TheMerryPrankster
TheMerryPrankster's picture

+100 Bingo No jobs = more foreclosures = less home sales = no jobs = more foreclosures. Rinse,repeat ad infinitium.


Bail out main street, cash goes to Wall St.

Bail out Wall St., cash stays on Wall St.

Ben Bernanke & Hank Paulson redefine the economic efficiencies of capitalism by choosing to bail out Wall St and cut out the middle man(main street).

Wed, 03/23/2011 - 10:39 | 1089976 mendigo
mendigo's picture

i think our government, working in concert with msm, is on an all-out blitz to portray the ecconomy as improving so they can get through the current budgeting cycle before taxpayers realize whats happening

Wed, 03/23/2011 - 10:40 | 1089977 Johnny Lawrence
Johnny Lawrence's picture

Don't worry about.  Neuberger Berman says everything is fine:

March 21st - We are relieved to hear of progress in dealing with Japan’s nuclear crisis and continue to track events there carefully. Meanwhile, the sentiment of global political uncertainty grows stronger with the allied intervention in Libya and the prolonged crisis conditions in the Persian Gulf. Still, while we recognize that there will be near and mid-term shocks to the system, we believe that these factors are unlikely to derail the current economic expansion. Japan is no longer a key driver of global growth, and Libya has already curtailed oil production. Other risks remain, including unrest in Bahrain, food and commodity inflation and sovereign debt.

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