Housing starts tumble to 14-year low

[Amerigo Vespucci]

Source: MSNBC

Housing starts tumble to 14-year low
U.S. building permit activity also fell sharply in September

MSNBC News Services
Updated: 9:48 a.m. PT Oct 17, 2007

WASHINGTON - Construction of new homes plunged by a bigger-than-expected amount in September, reflecting the deepening troubles in housing.

Groundbreaking for new U.S. homes and permits for future building both hit a 14-year low last month. The Commerce Department reported on Wednesday that housing construction fell by 10.2 percent last month to a seasonally adjusted annual rate of 1.191 million units. Applications for building permits, considered a good sign for future activity, also fell sharply in September, dropping by 7.3 percent to 1.226 million units.

Housing sales, which had set records for five straight years, have been slumping since 2006, a downturn that has intensified in recent months as mortgage lenders have tightened standards for getting loans in response to soaring defaults.

Both Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson warned this week that the housing downturn was likely to persist longer than had been expected.

Read more: http://www.msnbc.msn.com/id/21342004/

[aquart]

1. Than WHO expected?

I'm so sick of liars.

When something is called a "bubble," it's ridiculous to pretend you never thought it would burst and splatter everyone. Big bubble, big splatter. This bubble was KNOWN to be holding up the entire economy.

[ozone_man]

3. The FED caused the bubble.

"Both Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson warned this week that the housing downturn was likely to persist longer than had been expected."

Greenspan got out in time, leaving "printing press" Ben as the bag holder.

[BlueJazz]

2. I LOVE this Line >>>

"Both Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson warned this week that the housing downturn was likely to persist longer than had been expected".

Oh Really...Any Member of Democratic Underground could have told you that at least a year ago.

[Xenotime]

4. Housing is always the first to go in a failed economy.