Bad Financial Journalism

So, here we see the artcle based on data from the National Association of Realtors (NAR), an organization whose statements should trigger very loud bullsh^% alert titled, "U.S. Home Resales Rose in September to One-Year High."

Noting that home sales grew 5.1% from in September, 2008 as compared to August 2008.

The housing crash is over...Let the rejoicing begin!!!!!

Bad Journalism...the real story is that, "Foreclosure-related sales accounted for 35 percent to 40 percent of last month's total," and that's the NAR's, whose job is to lie like a rug present a rosy estimate.

But Mr. Morggage of the Mortgage Lender Implode-O-Meter notes that actual existing home sales are down, the month to month is created by seasonal sdjustments, and seasonal markets only should be applied to a stable market, not one in free fall.

By his figuring, existing home sales fell by 9.6% between August and September.

Me, I'd split the difference, which gives us (5.1%-9.6%)/2 or a drop of 2.05% for no reason at all. I pulled the equation out of my overly ample ass.

See table pron below.


Click for full sized.