Housing Starts

These are the stats on housing starts. In many ways this reflects the problem in several ways. First there is a dramatic reduction of employment here. Second there is lower demand, thus lower pricing, thus dramatically reduced value, thus wealth loss, thus the feeling that there will be a poor future.

So much of economics is human perception. One should read Smith and Hume again for in a way they stress the empirical world where reason plays less of a role as compared to perception based on what is presented. Unfortunately economics treats this poorly, for in fact the tools are not there.