This page has been archived and commenting is disabled.
Construction Spending Growth Slumps To 2015 Lows
A dramatic upward revision from 0.8% MoM to 1.8% MoM (after March's biggest jump since 1998), may be a small silver lining in the rear view mirror as construction spending growth tumbled to just 0.1% in May - the weakest since Nov 2014. It seems the climactic malinvestment boom in the last 3 months is faltering fast and is entirely unsustainable.
Charts: Bloomberg
»
- 5002 reads
- Printer-friendly version
- Send to friend
- advertisements -
The good news keeps coming. Old Yeller sure to increase rates in September - so says her poodle, Hilsenrath.
This is good for another 2pts on the DAX tomorrow.
DAX DOW parity or GTFO.
Fucking weather.
We need some Krugman Tornadoes...fast.
Hurricanes? El Nino put a damper on that hope for demand?
Well maybe California gets some water this winter.
The malinvestment boom started with the bailouts and QE1; the building of palaces and multi-family units that people won't be able to afford when the next bubble pops.
It's a bender in Vegas with the kids college fund, all the credit cards and cash - but WOW there's a lot of excitement at the craps table!
ZIRP money will fix everything. We're gonna need a lot more of it though, so full Zimbabwe speed......
"It was too summery to construct anything." quote by Larry Yun and Joe LaVorgon
No its the snow. I can still see snow on pikes peak so stop the building! Stop it now!
They can just bomb brown people then factor in the export costs of building materials for say a place like Syria. America fixed.
/s
At least we're going in the direction of conservation.
Construction is an industry where you can really SEE the malinvestments being made...Everywhere I go, I see empty strip malls, empty storefronts, our Galleria is about 1/2 occupied...walking through it reminds me of that Night of the Living Dead movie...
But they are BUILDING new ones, sometimes mere blocks away from one that's been shuttered for months. The structures are sound, throw some asphalt over the parking lot and it's good to go. But no, they'd rather just build a whole new one 100 yards away.
It's senseless...what business is going to want to rent a brand-new space right down the block from a boarded-up strip mall? What does that look like for a business just opening, to be surrounded by the corpses of previous failures?
Why not just give the old structures a makeover, and revitalize the existing area? Make it look like the area is coming back to life, instead of emphasizing its decline?
Shit like this is why I don't even want to HEAR about how broke we all are, and we can't afford this anymore, or that, and granny is just gonna have to suck it up, and we all have to lower our expectations, etc...
Bullshit. We have enough money, in fact, there has never been so much money in ANY economy. It's just being squandered. It's like having your husband tell you to make serious cuts to the household budget, but he goes out and buys a brand-new Harley while you and the kids eat beans.
It's a little hard to take him seriously.
Good thing there's lots of student housing and hospitals being built to take up the slack!
Instead of cargo cult economics we've got bubblenomics. Nothing is as important than maintaining a shiny facade of the thinnest veneer imaginable.
Well that and lion killers.
My friend,
While I agree with you about malinvestment, realize that you're wrong about there being so much money.
Credit, yes. Money, no.
We're still in 2015, stupid.