The Housing Recovery Lie

By Douglas V. Gibbs

While riding in a vehicle with a friend of mine to a recent event, he told me that the American Economy requires that the construction industry, and the housing market in general, is vibrant.  When a house is built, he was telling me, thirty different people are involved in the construction of that project, from underground and grading all the way to the final touches regarding landscaping.  Those thirty people then spend the money they earned building that house at various other places of business for products, or services.  All parts of the economy benefit from the involvement of those thirty people building that house.  Therefore, it is safe to say, based on his observation, that a housing recovery is an essential part of turning around America’s economy, and heading us back in the proper direction financially.

The democrats have hailed that the housing recovery is in full swing.  The republicans have said that the recovery is sputtering, and that the housing market can’t seem to pick up any momentum.

Moore says that the latest run of weak data suggests the same concerns she raised when the recovery was humming along last summer. Moore says the recent slowdown reveals the recovery was in fact “dubious” and based on investor demand versus real home-buyers.

“People haven’t been able to borrow for a mortgage for years.”