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[Matrix Skeptic] Recession To Housing’s 11th Power

In this series, I’ll focus on stats that look pretty cool, but aren’t necessarily something that answers any questions (Wait a second…isn’t that pretty much the case for all market stats?).

In Floyd Norris’ Blog: Notions on High and Low Finance, he looks at housing starts in a different way in his post Housing and Recessions [1]. I am not sure he subscribes to his theory or its just an interesting pattern.

Housing starts have now fallen for the 11th consecutive month yet a potentional recession goes against conventional wisdom. Here are the other 4 times since 1959 that an 11-fer has happened.

What about the comments from the Fed [2] that they will hold firm or raise interest rates because the economy is good?

Seems like housing is a lagging indicator, not a leading indicator.