Monday, December 30, 2013

The Government's New Home Sales Report Was A Total Fraud - Here's Why

Last week the Government's Census Bureau issued its monthly new home sales report for November.  Not only is the Government asking us to believe that the number of new homes sold in November - historically one of the slowest months of the year for home sales - exceeded the new homes sold in June, which is the highest month for sales, but it put in enormous upward revisions to the numbers originally reported for September and October.  Hmmm...

I wrote an article which runs through why it's not possible that the Government's numbers are even remotely close to being credible.  The two primary reasons are that mortgage applications and existing home sales tanked hard during the period in which the Government is now asking us to believe that new homes sales were at their highest of the year.  Here's the full analysis:  More Government Data-reporting Fraud

It's beginning to smell a lot like Orwell's Ministry of Truth in "Animal Farm," isn't it?


  1. Everything comes into play here. Salvation Army stores here have not met their quotas per month for several months and it's throughout the whole area. They are only making half of what they made last year and it's because people are holding onto their money with tight fists closed. We're talking about the poor middle underclass. Is this due to welfare and food stamps cuts? maybe. Or it may be that the economy is stinking and it is being felt across all spectrums except for the rich or those who can steal get cheap credit. If a lot of this hyper-manipulation is based on any kind of credit, it will be murderous when it pops. Are student loans still getting rolled into other financial instruments (like housing was)? Just wondering.....

    We must be careful not to get irk when MSNBC or the rest of society are singing, "Happy days are here AGAIN!!!" The common people on the streets don't feel that way as they are the first to feel any pain (the low-income working class). We know its gonna blow; we just hope it doesn't blow our way. I think whatever triggers this next one will come from an unexpected sector. I remember reading about the TARP bailout some years ago and it was said that a hedge fund - either tied to Bear Stearns or Goldman Sachs - that investors were abandoning very fast that triggered the financial crisis of 2008 (it was a 5-page story in the fresno bee web site where they interviewed Neel Kashkari, who Paulson elected to supervised the TARP. I can't find the article but it was a great read into some of the stuff that was happening at that time in Washington DC.).

    The roof is leaking, then the walls, then there's a inch of water on the floor....everybody is OK with it till they see a high-voltage wire come down from the ceiling and their foot is stuck in the floor because it just went through it due to it's rotting away. nice picture we're all painted into, eh?

  2. Watching this entire economy unravel is like Chinese water torture. I believe that the entire western world is going to implode. When you look at what is happening in Greece, Portugal, Italy, France. Also flash back to 1997 when Asia had their melt down. It started with the Thai Baht and then escalated into So. Korea then Japan. Looks like Thailand is having trouble propping up the Baht again. Could this be a black swan that no one recognizes ? There is gasoline all over the floor and are leaders are lighting cigars.

  3. Ministry of Truth - Orwell's 1984.....and yes it is.

  4. China has local government debts of 17.7 trillion yuan ($2.9tn), up 70% from three years ago, according to an official report. China's government asked the National Audit Office (NAO) in July to do a round-up of the debts outstanding at a local level.

    The report showed some local governments were using new loans to repay more than a fifth of their debt. China has a total government debt of about 58% of its economic output.

    Persistent fears over the level of non-performing bad debt have affected perceptions of the world's second-largest economy, as some worry whether the loans can be paid back.

  5. Ole Joe Goebbels is loving this shit from what ever hell he resides in. Tell a big lie and keep loudly repeating it until its believed. Was Orwell a visionary or really good at studying history? When this farce finally blows its going to be epic!

  6. The magic of seasonal and other types of adjustments is being taken to extremes.

    Raw data is better when adjustments become so ridiculous so as to support an agenda.

  7. Dave, have you read this article? The article says that your statement on SilverDoctors was wrong.

    1. Which statement? 57 tonnes vs. 55 tonnes? Are you fucking kidding? Depends on what day and how many days you include in the count. WTF?

  8. They are claiming the rise in housing sales is due to cash sales. It might be.