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John Lounsbury
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John Lounsbury, Managing Editor and Co-founder of Global Economic Intersection, provides comprehensive financial planning and investment advisory services to a small number of families on a fee only basis. He has a background which includes 34 years with a major international corporation, 25... More
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John B Lounsbury CFP
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Global Economic Intersection
  • Housing Starts and Household Formation 1 comment
    Aug 19, 2010 11:53 AM | about stocks: XHB, KRE, KBE

    Ezra Klein of the Washington Post has an interesting article and graph by Dylan Matthews showing part of the reason for the housing surplus:

    Using the data read from the graph, there were more than 3 million housing starts in excess of household formations from 2002 through 2009.

    This is another example of how supply and demand factors have gotten out of balance in recent years.  This was discussed recently in "Housing Shortage Coming"

    Disclosure: No positions.

    Stocks: XHB, KRE, KBE
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  • Mark Bern, CFA
    , contributor
    Comments (7589) | Send Message
    Nice graph and simple to understand. It makes a clear point that should be easy to follow. So, how can we be near the bottom in the housing market? The factors that destabilized housing continue to press down on values by continuing to oversupply vs demand.


    Thanks, John.
    19 Aug 2010, 02:59 PM Reply Like
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