Best Financial Markets Analysis Article The Economist Magazine, much admired for its Neo-Con views, (for example it's jingoistic support for the invasion of Iraq), has now applied its unique insights to the US housing market.

In the recent (3rd Oct 2009) edition they reported (Page 8):

"Amid renewed optimism...about America's...housing market...completed foreclosures now exceed 130,000".

Well that's certainly cause for optimism!

Err...what happened to the two million or so that everyone else says were foreclosed? Like perhaps when The Economist say, "exceed" they mean by about 1.87 Million, i.e. exceed by a factor "exceeding" 15?

That's rather like reporting that the weapons of mass destruction destroyed in Iraq "exceeded" one fifteen-year old gas mask and a home made drone (at a cost "exceeding" $700 billion (excluding "collateral" damage)).

Never under-estimate the ability of British Mainstream Press to put a positive spin on things, clearly Tony Blair's legacy lives on.

On that note, one piece of spin from the history books I liked particularly was:

That was February 2007, as they say, "perfect timing"!

What they didn't report was that last week Michael Barr from the US Treasury announced that "some analysts" have predicted that by the time the Bush/Greenspan economic magic that The Economist supported so enthusiastically, has run it's course, six million US homes will have been foreclosed.

(http://www.reuters.com/article/newsOne/idUSTRE5883S620090909).

That's forty-six times how many The Economist reckon have been foreclosed so far, clearly grounds for "optimism".

I wonder I wonder where Mr. Barr got his number from, perhaps it was the CIA, or perhaps:

Six Million Home Foreclosures: Next Ticking Lehman-Style Bomb…FDIC Insured Banks?

http://www.marketoracle.co.uk/Article13143.html

I'm just wondering who the other analyst is?

By Andrew Butter

Andrew Butter is managing partner of ABMC, an investment advisory firm, based in Dubai ( hbutter@eim.ae ), that he setup in 1999, and is has been involved advising on large scale real estate investments, mainly in Dubai.

© 2009 Copyright Andrew Butter- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Andrew Butter Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.