Friday, October 5, 2007

Are We There Yet for Homebuilders? - Part V

One fact that argues for investing now in Homebuilders is the strength of the general economy currently as compared to economic conditions back in 1989 to 1991. The chart below from Economagic shows the decline in non farm payrolls during the last great Housing crisis. The revision this morning to non farm payrolls for August from a previously reported loss of jobs to a gain, is more evidence of general economic strength. I seem to remember back in the early 1990's California had an unemployment rate around 9%.

Just think how bad things would be for Housing if another 2 million Americans lost their jobs.

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