Last Time Housing was at this Level Unemployment was 6%

By Oct 17, 2012, 3:53 PM Author's Blog  

Unemployment was 5.8% in July 2008 and 6.1% in August 2008.  Housing starts were 923,000 in July 2008 and 844,000 in August 2008.

Housing starts are now at 872,000.  And unemployment is 7.8%.  If you prefer other numbers like employment to population, or U-6, then things are much worse.

It’s not housing!  It’s NGDP, and it always has been.

With more NGDP we could be at 6% unemployment, even if we were just building 900,000 houses per month.

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