by John Galt
September 2, 2009
This story from Reuters this morning is so key to the problem and tells the tale:
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.