More Evidence the Recovery is Nothing more than a Fantasy

by John Galt

September 2, 2009

This story from Reuters this morning is so key to the problem and tells the tale:

US commercial property boom decades away – report

If anyone in their right mind thinks it is getting better, read this quote from the story:

 U.S. commercial real estate sales in the first half of 2009
totaled $16 billion, down 80 percent from the same period a
year earlier and off 93 percent from the market peak of $231.4
billion in the first half of 2007, according to the firm's U.S.
Mid-Year Capital Markets bulletin, released on Wednesday.

This should dispel the myth that we will see any serious economic growth other than contrived numbers or improvement due to government meddling in the economy. With CRE down 80% y-o-y and the residential market at 1960’s levels,  what you are witnessing is the complete collapse of the construction industry other than government projects which are slow to start and not as great as advertised. Beware the news you do not see and factor that into every story Bubblevision and the MSM attempt to promote this fantasy because this is a statistical recovery only and not sustainable without jobs growth and the construction industry and spending expanding.

Advertisements

2 Comments

Filed under Uncategorized

2 responses to “More Evidence the Recovery is Nothing more than a Fantasy

  1. RCP

    John:

    What is the hell sent gold to the rafters today (+$24)? Are folks finally running for the exits or something?

    RCP

  2. koios

    Per Fast Money, everything is now China’s fault. CRE, retail in the bag, bad banks, etc. The scary thing is a good segment of the great unwashed will believe it.