News like today's terrible housing report makes me ever more sure a federal housing bailout is on its way. Here is what IHS Global Insight has to say about the day's news:
The November home sales report illustrates the ultimate risk in a situation where negative business cycle momentum persists for an excruciating length of time. The home sales market has been in recession for over three years. Builders have been reducing supply since the first quarter of 2006, and housing starts and permits were further collapsed to record low levels in November. The housing industry in the U.S. in the process of reducing capacity to dangerously low levels.