Housing Starts Drop in May; Producer Prices Dip - WSJ.comU.S. home construction plunged in May as builders remained cautious about sales prospects absent government support programs for the housing sector.
Housing starts dropped 10% the month after the government ended its tax-credit program for home buyers, to a seasonally adjusted annual rate of 593,000. Permits for new construction also declined, the Commerce Department said Wednesday. Single-family housing starts slid by 17.2% to an annual rate of 468,000, the lowest level in a year.
Isn't it clear by now that this all this federal "stimulus" spending is a failure? Short term gain followed by bust, and more debt accumulated that has to be paid off. Where does it end? Apparently the White House doesn't get it. Now they say that we need to take another $50 billion out of the deep end of the pool and pour it into the shallow end to bail out state and local governments. And after that runs out, then what?