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US Housing Market Was Artificially Inflated By 14% In 2007-2010 NAR Reports

Tyler Durden's picture


Just the headlines for now:


Thank you NAR for proving what everyone knew: that the US housing market is one big lie. And next: here come the historical GDP revisions.

The three charts that matter:

And the reasons for the "rebenchmarking"

  • Fewer FSBO home sales and more REALTOR®-assisted home sales (e.g., no net increase in home sales in a case where 80 MLS sales and 20 FSBOs shifts to 90 MLS sales and 10 FSBOs)
  • More Homebuilders seek REALTOR®-assistance in listing properties on MLSs (More MLS count even though there is no increase in existing home sales)
  • Flipping of a home (re-sell within 12 months)
    • Re-benchmarked figure excludes the second sale, while they are counted as twice in MLS count
  • Enlarged MLS geographic coverage
    • Some of the home sales are not an increase in home sales but are just due to enlarged sampled areas
  • Double counting as one single property is listed in two or more MLSs
    • Example: a home in Colorado Springs is listed in MLS in Colorado Springs and is also listed in MLS in Denver.

Odd: no mention of the primary reason for the "rebenchmarking", namely that the NAR is nothing but an advertising front for the US housing industry.



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Wed, 12/21/2011 - 11:03 | 2000911 Bodhi
Bodhi's picture

Seriously, what a bunch of dicks.

Wed, 12/21/2011 - 11:12 | 2000958 Manthong
Manthong's picture

No big deal..

The government can make up for all of that with new Section 8 subsidized units.

I hear FEMA needs new gated communities, too. 

Wed, 12/21/2011 - 11:12 | 2000963 eureka
eureka's picture


Wed, 12/21/2011 - 11:19 | 2000970 Pladizow
Pladizow's picture

"Housing is one big lie" ?????

America is one big lie!

Reality has been Hyper-Hypothecated!

Wed, 12/21/2011 - 11:25 | 2000996 hedgeless_horseman
hedgeless_horseman's picture



Economic forecasts are one big lie.

Read this:

Wed, 12/21/2011 - 11:27 | 2001037 nope-1004
nope-1004's picture

Anybody that's ever dealt with a realtor knows they are full of shit.  If lies are generated from the head of the organization, then the entire thing is rotten.

Commissioned sales people have no skin in the game.  They tax every transaction and it is totally unnecessary.


Wed, 12/21/2011 - 11:29 | 2001052 Alcoholic Nativ...
Alcoholic Native American's picture

During the boom the houses were selling themselves.  I never did get why they were getting a cut.

Wed, 12/21/2011 - 11:44 | 2001103 GeneMarchbanks
GeneMarchbanks's picture

So America could employ retarded people.

Wed, 12/21/2011 - 11:45 | 2001115 redpill
redpill's picture

The revision wasn't large enough, they are still overstating.  I wouldn't be surprised to see some additional "stealth" revisions in future releases that pares the numbers back further.


Wed, 12/21/2011 - 12:38 | 2001350 Bicycle Repairman
Bicycle Repairman's picture

When you consider the numerous, important "headwinds" facing housing you'll realize except for certain specific, small areas (including the inevitable government subsidized areas), housing will not recover for a generation.

Tune NAR out.  Or pay the consequences.

Wed, 12/21/2011 - 11:45 | 2001117 Divided States ...
Divided States of America's picture

Nice, it took them 4 years to figure this out. Also, at least we know now that the S&P500 is probably at least 15% overvalued here as well but not sure when people will come to this realization.

Wed, 12/21/2011 - 12:02 | 2001206 Precious
Precious's picture

The National Association of Realtors should be prosecuted under the RICO Act. 

Wed, 12/21/2011 - 11:53 | 2001152 Careless Whisper
Careless Whisper's picture


Their job was to create a bidding war. 

Wed, 12/21/2011 - 11:48 | 2001132 PulauHantu29
PulauHantu29's picture

Perkin's book was an eye opener for me. Clear an dconcise and very descriptive.

Another excellent read is anyhting by Greider but this is a favorite:

Secrets of the Temple: How the Federal Reserve Runs the Country [Paperback]


Wed, 12/21/2011 - 11:55 | 2001135 TruthInSunshine
TruthInSunshine's picture

INFORMAL & ANECDOTAL PART (skip this is you're not into anecdotes): So, along this theme (the NAR scam), I'm out shopping for a few last minute things and noticed that the stores are, without a scintilla of a doubt the LEAST crowded I've ever seen.

I hate shopping. It's a guy thing. I mean, I REALLY hate it. But there I am, every year around Christmas, fighting the traffic and all those headaches and bullshit, because one can't be a total jerk and not buy gifts for people, right? And then here I am this year, doing the same thing (picking up tools and some things for myself mainly as I see 90% clearances on some actual quality tools, etc.) this year, and there's so little traffic that it is literally as if it isn't even Christmas time.

So, I start talking to some of the cashiers at various stores, and while I'm talking to this cashier at Home Depot, this manager who I happen to know because one of his older relatives was a client of mine (before passing away two years ago - super nice person) comes up and wishes me 'Happy Holidays' (he could have said 'Christmas', this 'Holidays' thing is and has been waaaay too PC), and we start to talk. Well, it turns out that he pulls me to side (there's no one in line behind me), sort of away from the cashier and starts talking out the side of his mouth, you know, like he was trying to keep the cashier from hearing, and he tells me this economy sucks, this is the worse traffic they've ever had since he's been with HD, they're getting all kinds of weird signals from management, yada yada.

It wasn't just Home Depot, either. It was everywhere I went, including other Big Box stores and the lifestyle malls - everywhere.

Anyways. I do believe Brick & Mortar is going to suck wind when the revisionary sales, post-cnBSc shaftwork & babblecock by Michelle Big-Caboosa Cabrera announced in a part masculine-trying to be lusty voice, come in.

But maybe if retailers and etailers sell enough loss-leading merchandise, by taking the volume approach (and really, if no one is buying at higher prices due to Bernankeconomics - whereby people cut spending out of necessity unless they can buy things at incredibly low price points, because they're getting reamed so badly by inflation in non-discretionary areas and a shitty economy and wage growth/shrinkage/non-existence - what choice do the retailers and etailers have?) they can do well this season /snark/.


I would not doubt for a second that we've been living in a time period, during the last 3 1/2 years, whereby we are witnessing the biggest gap between what the government agencies that report economic data and the non-Federal Reserveless non-Bank have told us & what the reality has been IN MOST OF OUR LIFETIMES.

Think about the housing sales data revisions; just itself. Let's not even delve into retail sales, bank data, etc.

If the NAR has this big of a revision, then who knows whether it's even close to being accurate, and if it's not accurate, it's probably still fluffed to the high side.

But even if it is in the general vicinity of being accurate, what does this revision mean in terms of economic activity as measured by $$$ that were reported to have taken place for x number of years, but in reality was all an illiusion - a mirage - a genuine Matrix Data Set?

Who traded off this massive falsehood? What repercussions were there and what repercussions are still to come from this massive, in terms of economic/monetary revision, and what further discrepancies on housing sales data or other data pertaining to other categories are there and will there be, whether reported or not?

It's all a sick, twisted, f*cking joke at this point.

This one single revision of housing data represents hundreds of billions of dollars (closing in on the big trillion USD mark) of fake GDP, that was reported in many ways and through many conduits, leading to reliance, actions, etc., but it was all a lie.

Anyways, Merry Christmas. It's always a great time to buy a house.

Wed, 12/21/2011 - 12:07 | 2001232 Taku
Taku's picture

Since there are no apparent consequences these days to collossal screw ups...let me just add a zero to my net worth..,oops! I'll leave that for 4 years and deal with it then...oh now I've just forgotten what I was talking about. I don't know what you're referencing...what does what mean? I take the fifth..what?? An entire billion is missing? I'm not sure what that is...

Wed, 12/21/2011 - 12:10 | 2001243 lynnybee
lynnybee's picture

reply to TRUTH in SUNSHINE:   many are too broke to shop & the rest are sic to death of the entire scam.     many (like me & a few of my friends & family) are DELIBERATELY withholding our money from the scam economy.    many (like me & a few of my friends & family) are DELIBERATELY hoarding cash, silver & gold & food & NOT handing money to big box stores.   the tide has turned; any money i spend is local & on necessities only ......... it's over, it's so damn over.

Wed, 12/21/2011 - 13:12 | 2001462 karzai_luver
karzai_luver's picture

Yeah, we were in a couple of different Best Buy stores in a real affluent neighborhood and the sales reps were think as fleas on a dirty dog the first of Dec.


Last weekend , other than the Iphone/ipod section you could not find one of them , I assume they were all cut back as the sales were done.

You couldn't get into the parking log of the 2 different Dollar Stores we drove past!


Wed, 12/21/2011 - 13:28 | 2001518 TruthInSunshine
TruthInSunshine's picture

Dollar Stores are the fastest growing retailers in Amerika.

Dollar Stores = New Target/Wal-Mart

Target/Wal-Mart = New Macy's


One of the sharpest guys in retail, EVER, IMO, Howard Davidowitz, just tells it like it is (brilliant call on Dollar Stores for years now, too):

HOWARD DAVIDOWITZ: Ben Bernanke Will Go Down In History As The Fed Chairman Who Destroyed The United States of America (Outstanding Video Interview)

Wed, 12/21/2011 - 13:36 | 2001557 karzai_luver
karzai_luver's picture

One of the 3 or 4 I will give a read.


Wed, 12/21/2011 - 14:01 | 2001667 MrTown3
MrTown3's picture

That makes my day

Wed, 12/21/2011 - 14:18 | 2001718 tarsubil
tarsubil's picture

Good God. Dollar Stores are the most depressing thing in the world.

Wed, 12/21/2011 - 12:30 | 2001323 spanish inquisition
spanish inquisition's picture

The big pre Xmas sales started in October to pull forward sales in the chase for expected limited dollars. I guess it is only natural that the post Xmas sales are pulled forward to before Xmas to bump year end. Margin is going to get crushed.

Wed, 12/21/2011 - 12:32 | 2001331 Eagle1
Eagle1's picture


If the truth be known, the data manipulation goes all the way back to the 70's where is was more subtle and easier to get away with. I first started noticiing this as an analyst back then. it gathered steram in the 80's and has gone viral since. Check out John Williams's ShadowStats web site as he is more on top of this than any of the street shills. Perception is reality for the markets until reality becomes so real that the market cannot deny. We are at that point now and staring at the cliff we are about to fall over. Our entire society has become one big lie, and we are about to see what life is like in a dictatorship/police state. Think Russian or French revolution...

Wed, 12/21/2011 - 13:08 | 2001449 karzai_luver
karzai_luver's picture

AND AND this was all during one of (until bush/bama bullcrap bailouts and fed of the world scams) the biggest "free money fog a mirror get a house" scam in the known universe.


Ans still the numbers , if you ever beleived them, were terrible.


Yep, the futures so bright I gotta wear those Nar-tinted shades baby.



Wed, 12/21/2011 - 12:00 | 2001198 pods
pods's picture

Great book.  Describes the way that third world countries are caught in the debt web.

Soon to be played out over and over again in the former 1st world countries.


Wed, 12/21/2011 - 13:17 | 2001483 spekulatn
Wed, 12/21/2011 - 12:06 | 2001226 TheMerryPrankster
TheMerryPrankster's picture

Bubbles Bernanke does have a ring to it. Perhaps the title "Chairman of the fed" could be changed to "Bubbler Rex".

Wed, 12/21/2011 - 14:06 | 2001685 tarsubil
tarsubil's picture

Empires need lies. Everything is a lie.

Wed, 12/21/2011 - 11:40 | 2001100 economics1996
economics1996's picture

I hear another bull rally when this shit hits Wall Street.  More bail outs on the way.

Wed, 12/21/2011 - 11:14 | 2000967 Elwood P Suggins
Elwood P Suggins's picture

Gues we now know what NAR stands for

Numbers Aren't Real

Wed, 12/21/2011 - 11:44 | 2001109 SheepDog-One
SheepDog-One's picture

National Association of Realtors are nothing but liars. You hear their ads all the time 'NOW is the best time to buy a house EVER' and all that....they dont care that prices are likely to fall another 25%, they need to generate commissions for their association members, meaning NAR is the LAST people to take any advice from.

Wed, 12/21/2011 - 12:05 | 2001219 Precious
Precious's picture

The National Association of Realtors should be prosecuted under the RICO Act. 

Wed, 12/21/2011 - 11:18 | 2000990 Sudden Debt
Sudden Debt's picture

Why the big fuzz? It's just a little rounding error of 14%....

Sometimes my dick is 18 inches in erection state, and sometimes it's only 16 inches.

It all depends if there's a lapdance included or not... and the size of the tits also count.

I don't care. As long as I get the booty.


Wed, 12/21/2011 - 11:26 | 2001031 Rainman
Rainman's picture

Next time Mrs. Rainman catches me lying, I'll blame it on 'rebenchmarking'

Wed, 12/21/2011 - 11:29 | 2001055 LongBallsShortBrains
LongBallsShortBrains's picture

Silly me..... I thought that was your ARMS swinging around!!!!

Wed, 12/21/2011 - 13:39 | 2001575 True.North
True.North's picture

I'm waiting for the CPI revisions

Wed, 12/21/2011 - 19:07 | 2002761 geologyguy
geologyguy's picture I know why the high school they "just had to build" 3 years ago for 15 million $ right down the street from me thinking it would be at maximum capacity is at less than half full.

Thank you NAR, local govt, natl govt, state govt, fannie mae, freddie mac, and all the other fuckers out there for creating this mess.

Now if only the band could muster more than 10 members for the football games...

Wed, 12/21/2011 - 11:03 | 2000913 Tsar Pointless
Tsar Pointless's picture

CNBC headline:

  • US Existing-Home Sales Surged 4 Percent in November (Story Developing)
  • Tsar Pointless, LOLing in his cubichell.

    Wed, 12/21/2011 - 11:05 | 2000925 r101958
    r101958's picture

    Please favor us with some editing. The above should read "CNBS headline:".

    Wed, 12/21/2011 - 11:30 | 2001061 oogs66
    oogs66's picture

    missed estimates by 600,000 but hey, still 4% better than last months number, which was revised down by 700k!

    Wed, 12/21/2011 - 13:30 | 2001527 TruthInSunshine
    TruthInSunshine's picture

    And 2007 through 2010 was only revised down by 3,000,000 home sales!

    Wed, 12/21/2011 - 15:00 | 2001828 Kali
    Kali's picture

    Office of Comptroller of Currency-home foreclosures surge 21% in Q3 2011.  So even if true (lol)  the amount of foreclosures is rising 17% more than sales.  Oop.

    Wed, 12/21/2011 - 11:03 | 2000916 Irish66
    Irish66's picture

    Doesn't all forecast have to be revised now??

    Wed, 12/21/2011 - 11:06 | 2000923 whatsinaname
    whatsinaname's picture

    What role do the existing home sales play in the GDP ? what is the weightage if any attached to this component ?

    Maybe the formula will have to be changed yet again so things look rosy again ? 

    Wed, 12/21/2011 - 11:20 | 2001002 Don Birnam
    Don Birnam's picture

    Residential Fixed Investment represented 2.3% of GDP in 2010. With the continuing housing depression, I suspect that number is no higher -- indeed, perhaps lower -- for 2011.

    Wed, 12/21/2011 - 11:20 | 2001005 Irish66
    Irish66's picture

    I see downgrade coming

    Wed, 12/21/2011 - 11:10 | 2000955 smlbizman
    smlbizman's picture

    and these new numbers are how accurate? or is there a chance of error + or - 100%?

    Wed, 12/21/2011 - 11:34 | 2001076 LongBallsShortBrains
    LongBallsShortBrains's picture

    Do you really think there is any reason to be skeptical? You don't think they would LIE to us you? I guess that troll was right... We are a bunch of gloom and doomers here at ZH!!!!!


    Wed, 12/21/2011 - 11:03 | 2000917 firstdivision
    firstdivision's picture

    After this adjustment, how does this line up with the MBA Purchase Apps?

    Wed, 12/21/2011 - 11:07 | 2000937 GMadScientist
    GMadScientist's picture

    I think you mean 'MBS', but it does seem like they got their degrees through Android Market or the App Store.

    Wed, 12/21/2011 - 11:04 | 2000918 Clam McCain
    Clam McCain's picture

    absolute amateur hour

    Wed, 12/21/2011 - 11:04 | 2000919 tmosley
    tmosley's picture

    What if they are still lying?

    Wed, 12/21/2011 - 11:06 | 2000934 r101958
    r101958's picture

    What if??????

    Wed, 12/21/2011 - 14:05 | 2001684 TruthInSunshine
    TruthInSunshine's picture

    No, no.

    You mean "What IF?"

    Wed, 12/21/2011 - 11:09 | 2000946 GeneMarchbanks
    GeneMarchbanks's picture

    A liar shall not be believed even when telling the truth...

    Wed, 12/21/2011 - 11:35 | 2001082 r101958
    r101958's picture

    Yes, especially when telling the truth = 5% of the time.

    Wed, 12/21/2011 - 11:20 | 2001001 Ruffcut
    Ruffcut's picture

    It is the way of the land to cover over bullshit, with more bullshit until you bury yourself in it. If you are successful in this venture you are now top pick for government work and running for office. Bullshit experience is a pre rec for thieves positions.

    I wonder how many samples they need to get a better than real read on consumer sentiment.

    The sample group:

    Employed, pollyanna and on high doses of prozac.

    Wed, 12/21/2011 - 11:59 | 2001191 Sudden Debt
    Sudden Debt's picture


    Wed, 12/21/2011 - 12:04 | 2001215 Precious
    Precious's picture

    The National Association of Realtors should be prosecuted under the RICO Act. 

    Wed, 12/21/2011 - 11:04 | 2000921 Josh Randall
    Josh Randall's picture

    So you're saying I've been lied to by these people, And they don't work for the government ?!

    Wed, 12/21/2011 - 11:05 | 2000926 AngryGerman
    AngryGerman's picture

    yeah, really shocking, that you are lied to by people who work for your government! who would ever thought...

    Wed, 12/21/2011 - 11:29 | 2001050 Sophist Economicus
    Sophist Economicus's picture

    Yup. These are the other class of liars. They work WITH the government

    Wed, 12/21/2011 - 11:04 | 2000924 I Am Not a Copp...
    I Am Not a Copper Top's picture

    Of course now they will have favorable comps going forward to make it look like housing is recovering

    Wed, 12/21/2011 - 11:08 | 2000942 Dick Darlington
    Dick Darlington's picture

    Hahahaa, exactly my thought also. Now we can wait all those "Better than expected!" spins from the banks going forward. And just in case, the winter is coming and with it comes the dear excuse for everything and anything: "weather related".

    Wed, 12/21/2011 - 11:36 | 2001073 Stax Edwards
    Stax Edwards's picture

    I don't know about 'comps' per se, but definitely thinking the best way to get the numbers to say what you want is to change the formula. Particularly if that lowers last years numbers which it has.  Bar has been effectively lowered.  Move along now, nothing to see here.

    I can guarantee you that NAR did not make formula revisions that would work against them in the future.  That is not happening.

    Wed, 12/21/2011 - 12:02 | 2001209 Precious
    Precious's picture

    The National Association of Realtors should be prosecuted under the RICO Act. 

    Wed, 12/21/2011 - 11:06 | 2000929 BennyBoy
    BennyBoy's picture

    They were just followings orders....

    Wed, 12/21/2011 - 11:06 | 2000930 fonzanoon
    fonzanoon's picture

    will GDP be revised far enough down to indicate that we are actually in recession?

    Wed, 12/21/2011 - 11:06 | 2000932 qussl3
    qussl3's picture

    MBS purchases enroute early 2012.

    Wed, 12/21/2011 - 11:07 | 2000933 Jlmadyson
    Jlmadyson's picture

    Yea let's see those GDP revisions because they would be nasty on top of nasty. Talking real depression territory for those low years.

    Wed, 12/21/2011 - 11:10 | 2000948 Caviar Emptor
    Caviar Emptor's picture

    Or...House GOP could send us all a check to keep quiet and nobody needs to know

    Wed, 12/21/2011 - 11:07 | 2000935 oogs66
    oogs66's picture

    are the algo's focusing on the "better than expected" 4% MOM increase?  the numbers are horrific!

    Wed, 12/21/2011 - 11:08 | 2000939 yogibear
    yogibear's picture

    NAR = Continued lies.

    Always touted it was the best time to buy a home when the crash started.

    Many young people are so loaded down with school loans they will have a tough time affording anything.

    Wed, 12/21/2011 - 11:09 | 2000940 GMadScientist
    GMadScientist's picture

    All your (former) homes are belong to Ben.

    Why on earth would anyone take industry lobbyists at their word anyway?

    Wed, 12/21/2011 - 11:46 | 2001118 A Lunatic
    A Lunatic's picture

    There are no lobbyists in the Obama administration, remember? No bankers either. Transparency, Bitchez.

    Wed, 12/21/2011 - 11:08 | 2000941 Caviar Emptor
    Caviar Emptor's picture

    SO...does this mean all of those stock 'rallies' on the housing news are going to be given back?

    Naaah...that would be in a REAL market. 

    Wed, 12/21/2011 - 11:18 | 2000994 scatterbrains
    scatterbrains's picture

    absolutely! Just look at DRV is up .001%  today after collapsing by 30% over the last few weeks. Correction is over, time to buy Mall Reits.


    Wed, 12/21/2011 - 11:08 | 2000943 scatterbrains
    scatterbrains's picture

    I don't get why not keep the lie going ? Why bother to be truethful.. there must be some motive no ? Are they setting the stage for some fed action soon?

    Wed, 12/21/2011 - 11:29 | 2001053 Rainman
    Rainman's picture

    Corelogic called them out on their bullshit in January.

    Wed, 12/21/2011 - 13:18 | 2001486 karzai_luver
    karzai_luver's picture

    Are you kidding , all you have to do is "fess up" and the avg sheep will forgive and forget and then you rape them all over again.


    It's the amuerican WAY!


    Just say your(re) sorry and go right on with the scam.


    Wed, 12/21/2011 - 11:20 | 2001000 c'mon man
    c'mon man's picture

    Yes...go to this link....print out...then wipe ass with report.

    Wed, 12/21/2011 - 11:09 | 2000945 Richard Head
    Richard Head's picture

    It's always a great time to buy!  Buy now or be priced out forever!

    Wed, 12/21/2011 - 11:11 | 2000957 GMadScientist
    GMadScientist's picture

    It's always a great time (for us to get a slice when we get you) to buy!

    Buy now or (we may) be priced out (of a C-class) forever!

    Wed, 12/21/2011 - 11:10 | 2000949 Alcoholic Nativ...
    Alcoholic Native American's picture

    Young people with student loans won't be purchasing houses any time soon either.  I don't think the housing market will recover for a while.

    Wed, 12/21/2011 - 11:17 | 2000988 GMadScientist
    GMadScientist's picture

    I have 20% down, but am perfectly happy to rent and gamble with it until 16% of the current price is sufficient.

    With prices dropping and rates nailed to the floor, why the hell would I do anything else?


    Wed, 12/21/2011 - 11:26 | 2001033 Alcoholic Nativ...
    Alcoholic Native American's picture

    I'm renting too. I got me a nice pad in town for 225 a month.  Sure it's in a shady area, but I'm pretty shady myself.

    Wed, 12/21/2011 - 11:45 | 2001116 walküre
    walküre's picture

    $225 a month? is that the janitor's closet or something?

    Wed, 12/21/2011 - 12:41 | 2001354 j0nx
    j0nx's picture

    225 a month? That's like 5 days worth of rent here in the DC area for a marginal place in a mediocre neighborhood. You renting from a family member or something?

    Thu, 12/22/2011 - 07:25 | 2003693 Taint Boil
    Taint Boil's picture

    $225 ??? my taxes and insurance is $354 a month here in Michigan. does a good job on the rent vs. buy thing.

    Wed, 12/21/2011 - 11:44 | 2001110 serog
    serog's picture

    I will be perfectly happy with you renting my house for 100% more than what my payments are. 

    Wed, 12/21/2011 - 11:10 | 2000953 MiddleageThinni...
    MiddleageThinninghair's picture

    I don't know specifically how this revision will affect future numbers.  But to me it appears they are trying to game the system by now lowering past number and thus make it easier to raise future year on year moving averages.

    Wed, 12/21/2011 - 11:16 | 2000976 hedgeless_horseman
    hedgeless_horseman's picture



    See BLS weekly.

    Wed, 12/21/2011 - 11:16 | 2000982 dvsteenk
    dvsteenk's picture

    exactly what i was thinking, just lower the anchor points a bit (only 14%) and next time they can report huge "improvement" or "better than expected"

    and the majority will swallow this

    Wed, 12/21/2011 - 11:18 | 2000992 GMadScientist
    GMadScientist's picture

    They are industry shills and may as well be showing you something their kid drew with a crayon.

    Wed, 12/21/2011 - 11:12 | 2000960 Panafrican Funk...
    Panafrican Funktron Robot's picture

    In a related note:

    Just want to direct everyone's attention to the margin of error on housing starts and completions.  Begs the question of why people even bother.

    Wed, 12/21/2011 - 11:23 | 2001020 RobD
    RobD's picture

    +/- 20% lol what a fucking joke.

    Wed, 12/21/2011 - 11:41 | 2001104 junkyardjack
    junkyardjack's picture

    How to Lie with Statistics 101

    Wed, 12/21/2011 - 12:07 | 2001233 Precious
    Precious's picture

    The National Association of Realtors should be prosecuted under the RICO Act. 

    Wed, 12/21/2011 - 11:12 | 2000961 Bulletsnbullion
    Bulletsnbullion's picture

    America the....Joke.

    Wed, 12/21/2011 - 11:14 | 2000968 Jumbotron
    Jumbotron's picture

    Just adjust the adjusted numbers down by 14% and you'll get the truth.

    Wed, 12/21/2011 - 11:14 | 2000971 Caviar Emptor
    Caviar Emptor's picture

    NAR: we lied about existing home sales

    Corzine: we lied about where your money was

    BLS: we lied about embargoed data release times

    Anyone in jail, or doing 'community service'? 

    I think it's time we re-visit the Madoff: I can argue that he created jobs and was the victim of too much government intervention

    Wed, 12/21/2011 - 11:21 | 2001008 GeneMarchbanks
    GeneMarchbanks's picture
    Ransqwuak: 'Moody's reiterates Australia AAA sovereign rating; outlook stable

    - sees Australia maintaining low debt levels'

    Moody's has gone full retard. Has nobody the capacity to visit Steve Keen's site for some decent numbers? Mouthbreathers...

    Wed, 12/21/2011 - 12:06 | 2001225 Alex Kintner
    Alex Kintner's picture

    Obama on 60 Minutes December 11, 2011

    Kroft: ...there's not been any prosecutions, criminal prosecutions, of people on Wall Street. And that the civil charges that have been brought have often resulted in what many people think have been a slap on the wrist, fines. Are you disappointed by that?

     Obama: ...I can tell you, just from 40,000 feet, that some of the most damaging behavior on Wall Street, in some cases, some of the least ethical behavior on Wall Street, wasn't illegal.

    Wed, 12/21/2011 - 12:38 | 2001351 ParkAveFlasher
    ParkAveFlasher's picture

    You're just spilling out all over the dock, aren't you?

    Wed, 12/21/2011 - 13:15 | 2001475 pods
    pods's picture

    "Pippit, here pippit.  Pippit?"


    Wed, 12/21/2011 - 14:29 | 2001754 Alex Kintner
    Alex Kintner's picture

    Ha ha.

    Fellows, let's be reasonable, huh? This is not the time or the place to perform some kind of a half-assed autopsy on a fish... And I'm not going to stand here and see that thing cut open and see that little Kintner boy spill out all over the dock.

    Wed, 12/21/2011 - 12:07 | 2001229 Precious
    Precious's picture

    The National Association of Realtors should be prosecuted under the RICO Act. 

    Wed, 12/21/2011 - 12:13 | 2001254 serog
    serog's picture

    We get it.  No need to post the same fucking sentence 6 times.

    Wed, 12/21/2011 - 16:05 | 2002047 Precious
    Precious's picture

    Seven times, a-hole.  And more until the American public f-ups finally get it.

    The National Association of Realtors should be prosecuted under the RICO Act. 

    Wed, 12/21/2011 - 11:14 | 2000972 Tsar Pointless
    Tsar Pointless's picture

    Look at the Dow - to borrow CNBS' word regarding November 2011 existing home sales - "surge" upon release of this news.

    BTFD you idiots! Santa's watchin' ya!

    Wed, 12/21/2011 - 11:15 | 2000974 youLilQuantFuker
    youLilQuantFuker's picture

    So the housing bubble was a lie? I see the errors beginning in 2007.

    Wed, 12/21/2011 - 11:30 | 2001060 youLilQuantFuker
    youLilQuantFuker's picture

    Why are you negativing me? It's just a question.

    Wed, 12/21/2011 - 12:18 | 2001276 youLilQuantFuker
    youLilQuantFuker's picture

    OMG! I cannot believe.

    You desterbeds are negativing my negating question! Sick!

    Wed, 12/21/2011 - 11:16 | 2000978 ffart
    ffart's picture

    Just curious, do the people who trusted the NAR's numbers also buy their Rolexes from street vendors in cambodia?

    Wed, 12/21/2011 - 12:03 | 2001213 Precious
    Precious's picture

    The National Association of Realtors should be prosecuted under the RICO Act. 

    Wed, 12/21/2011 - 11:16 | 2000980 kralizec
    kralizec's picture

    Liar, Liar! ...

    Hey, Bullish on pants!

    Wed, 12/21/2011 - 11:16 | 2000981 sbenard
    sbenard's picture

    Better name: National Association of Liars


    I wonder if they will revise GDP accordingly! Not likely!

    Wed, 12/21/2011 - 11:18 | 2000986 Yen Cross
    Yen Cross's picture

     Keep on slapping up those ( Card- Board-Boxes ) , you asshats.  Shanghai style.  No wonder ( CAT ) was up 5% yesterday!

    Wed, 12/21/2011 - 11:17 | 2000989 Bold Eagle
    Bold Eagle's picture

    I am sure all those factors did not affect data before 2007

    Wed, 12/21/2011 - 11:18 | 2000993 Sandy15
    Sandy15's picture

    I'm sure many other numbers, i.e. unemployment, inflation, etc are off by 14% too.......  but the market was up 300+ points on Dec 20th??????

    Wed, 12/21/2011 - 11:19 | 2000998 AlaricBalth
    AlaricBalth's picture
    Components of GDP by expenditure

    Components of U.S. GDP

    GDP (Y) is a sum of Consumption (C), Investment (I), Government Spending (G) and Net Exports (X – M).

    Y = C + I + G + (X ? M)

    Here is a description of each GDP component:

    • C (consumption) is normally the largest GDP component in the economy, consisting of private (household final consumption expenditure) in the economy. These personal expenditures fall under one of the following categories: durable goods, non-durable goods, and services. Examples include food, rent, jewelry, gasoline, and medical expenses but does not include the purchase of new housing.
    • I (investment) includes business investment in equipments for example and does not include exchanges of existing assets. Examples include construction of a new mine, purchase of software, or purchase of machinery and equipment for a factory. Spending by households (not government) on new houses is also included in Investment. In contrast to its colloquial meaning, 'Investment' in GDP does not mean purchases of financial products. Buying financial products is classed as 'saving', as opposed to investment. This avoids double-counting: if one buys shares in a company, and the company uses the money received to buy plant, equipment, etc., the amount will be counted toward GDP when the company spends the money on those things; to also count it when one gives it to the company would be to count two times an amount that only corresponds to one group of products. Buying bonds or stocks is a swapping of deeds, a transfer of claims on future production, not directly an expenditure on products.
    • G (government spending) is the sum of government expenditures on final goods and services. It includes salaries of public servants, purchase of weapons for the military, and any investment expenditure by a government. It does not include any transfer payments, such as social security or unemployment benefits.
    • X (exports) represents gross exports. GDP captures the amount a country produces, including goods and services produced for other nations' consumption, therefore exports are added.
    • M (imports) represents gross imports. Imports are subtracted since imported goods will be included in the terms G, I, or C, and must be deducted to avoid counting foreign supply as domestic.

    A fully equivalent definition is that GDP (Y) is the sum of final consumption expenditure (FCE), gross capital formation (GCF), and net exports (X – M).

    Y = FCE + GCF+ (X ? M)

    FCE can then be further broken down by three sectors (households, governments and non-profit institutions serving households) and GCF by five sectors (non-financial corporations, financial corporations, households, governments and non-profit institutions serving households). The advantage of this second definition is that expenditure is systematically broken down, firstly, by type of final use (final consumption or capital formation) and, secondly, by sectors making the expenditure, whereas the first definition partly follows a mixed delimitation concept by type of final use and sector.

    Note that C, G, and I are expenditures on final goods and services; expenditures on intermediate goods and services do not count. (Intermediate goods and services are those used by businesses to produce other goods and services within the accounting year.[7] )

    According to the U.S. Bureau of Economic Analysis, which is responsible for calculating the national accounts in the United States, "In general, the source data for the expenditures components are considered more reliable than those for the income components [see income method, below]."[8]

    Wed, 12/21/2011 - 11:31 | 2001064 Everyman
    Everyman's picture

    I just wondered this, and you already answered.

    Shouldn't there be a lot of assholes puckering as we speak as the broader implications of this BullShit number works it's way through all the index's?

    Wed, 12/21/2011 - 11:31 | 2001065 Caviar Emptor
    Caviar Emptor's picture

    y = c + i + g + (x - m) +F... where F = Fantastic Fungible Fudge

    Wed, 12/21/2011 - 11:42 | 2001106 r101958
    r101958's picture

    Exactly. And if the gov't wasn't deficit spending to the tune of 1.5 trillion (10% of GDP) then where would this 'recovery' be? Well, about -8% GDP. So much for this farcical mirage of a 'recovery'.

    Wed, 12/21/2011 - 14:47 | 2001501 Lednbrass
    Lednbrass's picture

    Unfortunately this has been the game for decades.  Just out of morbid curiosity, I recently looked up the annual US GDP since 1980 and factored out deficit spending and inflation.  As you might guess, the result was a complete and total train wreck.  We had a couple years that showed small growth in the late 90's without the life support systems, beyond that it was a wall to wall disaster.  Someday I plan to track back and try to see when things went completely off the rails as a matter of policy, but its been a few months since I did that and the nausea hasnt subsided yet.

    Wed, 12/21/2011 - 11:20 | 2001004 InfoMacion
    InfoMacion's picture

    The problem with this country is that these people never get punished.  All these people have to say is it was a mistake, no criminal intention there was.

    That was with Hank Paulson and every other jerks there are out there making millions by lying to the public. They lied to the public and they get away with it all the times. It wasn't like this in 70s.  People has some honors, then. I am getting really sick seeing these stuffs everyday.

    Wed, 12/21/2011 - 11:20 | 2001006 Maos Dog
    Maos Dog's picture

    These two issues here:


    • Enlarged MLS geographic coverage
      • Some of the home sales are not an increase in home sales but are just due to enlarged sampled areas
    • Double counting as one single property is listed in two or more MLSs
      • Example: a home in Colorado Springs is listed in MLS in Colorado Springs and is also listed in MLS in Denver.



    Are really rookie mistakes that a grad finance student could not get away with. Unreal.


    Can't wait to see Mr. Middleton's take on these revised numbers


    Wed, 12/21/2011 - 11:20 | 2001007 the not so migh...
    the not so mighty maximiza's picture

    All to keep the property taxes up.   Arrests and executions should commence from DC down to the County seats everywhere.  What a disgrace.    Phony numbers by phoney leaders.

    Wed, 12/21/2011 - 11:20 | 2001010 surf0766
    surf0766's picture

    At some point they will have to admit housing started falling apart in late 2005.


    Wed, 12/21/2011 - 11:22 | 2001014 LawsofPhysics
    LawsofPhysics's picture

    So will this lead to a market dump or pump?  Thoughts?  Vote please, up arrow of pump, down arrow for dump.

    Wed, 12/21/2011 - 12:30 | 2001321 RichardENixon
    RichardENixon's picture

    I voted pump and here's why. The market will quickly realize that this downward revision leads to more favorable numbers going forward, as the headlines will read "Housing Sales Increase, Top Estimates." The reality behind the numbers is meaningless, only the perception of what will be perceived counts. The fact that I have come to think this way proves to me that I need to withdraw from this crazed system and learn to farm or maybe get a job down at the carwash.

    Wed, 12/21/2011 - 11:22 | 2001016 pods
    pods's picture

    No, this time we aren't lying, honest.


    Wed, 12/21/2011 - 11:22 | 2001017 americanspirit
    americanspirit's picture

    I think this is strong evidence of a RICO crime on the part of NAR executives as a conspiratorial attempt to manipulate the equities market in favor of their 'clients'. But of course the worst AG since John Mitchell ( and that's really saying something considering the sorry lot of them since) will do absolutely nothing about it. 

    Wed, 12/21/2011 - 11:44 | 2001111 LongBallsShortBrains
    LongBallsShortBrains's picture

    You owe me a new keyboard.

    Wed, 12/21/2011 - 11:24 | 2001025 Milton Waddams
    Milton Waddams's picture

    Kubler Ross model would seem to indicate a nadir is near.

    Wed, 12/21/2011 - 11:25 | 2001027 lizzy36
    lizzy36's picture

    But Cramer called the bottom in 2006, 2007, 2008, and 2009. 

    So his "getting back to even" strategy may also be flawed?

    On a serious note, in the last month Fed admitted that they are awful economic forecasters and NAR admitted they completely make up numbers. Yet Yanks continue to create macro economic policy responses to horrible date. 

    Alas, capital markets and the sheeple that worship them, never look behind the curtain, until the curtain is blown to hell.

    Wed, 12/21/2011 - 11:28 | 2001041 junkyardjack
    junkyardjack's picture

    This is bullish, it'll be easier for housing to grow off that lower base right? 

    Wed, 12/21/2011 - 11:29 | 2001048 Everyman
    Everyman's picture

    So are they going to adjust all the other index that use the NAR housing values and recalculate them backwards to give us a good look at everything?


    Wed, 12/21/2011 - 11:30 | 2001058 ParaZite
    ParaZite's picture

    So, we were all lied to... and no one is going to go to jail for this?
    Sounds like a pretty rigged system to me! Someone is making their Christmas bonus right now off some insider info about this, and the plunge on Wall Street that will follow... you can bet your bottom dollar on that... and the fact that not one single criminal will go to jail over it.

    Wed, 12/21/2011 - 11:30 | 2001063 Alex Kintner
    Alex Kintner's picture

    The 60 Minutes piece on Detroit was telling. The city is bulldozing $100K properties rather than have them turn to blight --  stripped of aluminum siding, copper pipes and fixtures.

    Wed, 12/21/2011 - 11:49 | 2001136 walküre
    walküre's picture

    People are paying attention.

    Wed, 12/21/2011 - 11:42 | 2001069 AlaricBalth
    AlaricBalth's picture

    The residential investment component in housing in Q1 GDP 2010 was $355.5 Billion. A back of the envelope adjustment of -15% to that number is roughly $302.2 Billion. The net effect on GDP would be a subtraction of about $53.3 Billion from Q1 GDP 2010. It deflates the GDP number for that quarter by roughly .3% from +2.7% GDP to +2.4%. Each GDP quarter which falls into the NAR's revisions would have a similar effect.

    Wed, 12/21/2011 - 11:33 | 2001074 AndrewJackson
    AndrewJackson's picture

    From what I understand existing home sales by themselves do not affect gdp. However, I am sure this feeds into calculating some other input of GDP. Anyone have a good answer?

    Wed, 12/21/2011 - 11:36 | 2001088 mktsrmanipulated
    mktsrmanipulated's picture

    as bad as this sounds you can see that the mkt and its robots are gonna go higher today what a fucking joke..although there were complaints that mkt were manipulated by floor traders at least the mkt would correct now the algos have completely made this a ponzi scheme of epic proportions

    Wed, 12/21/2011 - 11:43 | 2001107 marcusfenix
    marcusfenix's picture

    so when do we find out that the BLS has fudging unemployment on the low side for the last 4 years? you know, that it really was and still is the 12 or 15 or 20% Obama said it "could have been" had we not handed over x amount of trillions of dollars to banksters worldwide...

    Dukin' doughnuts has it wrong...America runs on lies, propaganda and "statistics"

    Wed, 12/21/2011 - 11:54 | 2001163 tocointhephrase
    tocointhephrase's picture

    GoW is the bollox!

    Wed, 12/21/2011 - 11:45 | 2001113 lolmao500
    lolmao500's picture

    Next : GDP revision and unemployment revision... just before the election would be neat to crush Obama once and for all.

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