Our latest mainstream media head lie is a doozy. From Bloomberg:
June Sales of U.S. New Homes Climb More Than Forecast
As with every mainstream headline, one must venture into the fine print to figure out what is really happening.
This particular headline would have better served the public had it said something along the lines of this:
Junes Home Sales Number Is Second Weakest Ever Recorded
You read that right.
Within the actual Bloomberg story is the truth surrounding the June home sales numbers, depicted in this single sentence:
The rate was the second-lowest in data going back to 1963 after Mayâ€™s downwardly revised 267,000 pace.
So, we basically have, back-to-back, the lowest ever recorded months for home sales since records have been kept.
But this didn’t stop the stock market. In fact, the Dow Jones is up 1% (100+ points) as of this writing. Bloomberg explains why:
Stocks rose as the housing report and an improved forecast by FedEx Corp. lifted shares of homebuilders and transportation companies. The Standard & Poorâ€™s 500 Index rose 1.1 percent to 1,115.01 at the 4 p.m. close in New York. The S&P Supercomposite Homebuilder Index climbed 2.9 percent.
In our bizarro world, this somehow makes sense.
If you are still buying stocks expecting an economic recovery to take hold sometime in the near future, you are committing financial suicide.
The media can spin this however they like, but facts are facts. And right now, we have increasing job losses, growing foreclosures, declining home sales and we’ve bitten off more debt than we can chew.
Believe the head lies and you’ll pay the price.
Perhaps it’s time that Bloomberg news has all of their material screened by the Gatekeeper news watchdog before publishing.
Hat tip Karl Denninger for bringing this one to our attention.