Monday, March 24, 2008


That is the only word to describe the MSM today. Well that and maybe moronic.

As you all read/heard/watched reporters have mini-orgasms about housing sales going up 2.9% in Feb. In the many stories I saw/watched/heard, not one said up 2.9% compared to what. If I told you March 24th's average temperature was 2.9% warmer than Feb 24th's average temperature, would that get you all hot and bothered? Of course not. This is because March is always warmer than Feb (assuming you live north of the equator).

This is exactly what happened and what was reported. And what will happen for the next 2 months. February sales are always higher than January sales. Every year this is the case. And March is higher than February and April is higher than March every year. I have said this before and will say it until I am blue in the face....comparing month to month is meaningless. Comparing year over year is what counts. Do you see ski resorts coming out and saying hey check this out December's revenue was 98% higher than November's revenue, let's party. No and there is a reason for that. Yet the NAR releases this meaningless month over month number and every incompetent "reporter" regurgitates it like a mindless drone.

What the MSM failed to say was that comparing Feb 07 to Feb 08 shows a 24% DECLINE in sales. And given the fact that February 2008 has an extra day, it is closer to 30% lower than February 2007. And 2007 was lower than 2006 which was lower than 2005.

But why let all those pesky facts get in the way of a good suckers rally on Wall St?


Anonymous said...

Hey Ed what's shaking.

Out of curiosity do you know ANY media sources who do report or point out this issue? Or other blogs? Would like to use this in a paper.

Ed said...


Do I know any media sources? Bill Fleckenstein writes for MSN Money. He has been a consistent voice of sanity in an otherwise insane ocean. is THE housing bubble/crash blog with links to a whole bunch more. Check it out.