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Friday, February 18th, 2011
realty reality

On Wednesday, there will be an official-looking release of the monthly existing home sales number.  One could say much about the pattern of the above chart, but why bother?

There’s a reason that I write here and in my essays about the “how” of investment decision making.  The amazing story of the misleading numbers that have come out of the National Association of Realtors tells you all you need to know.  For years the market accepted them at face value — no wisdom of the crowd here, despite having educated and highly-paid experts milling about and opining on the numbers.

A summary of the story and links to more information can be found on Calculated Risk.  (Chart:  Bloomberg terminal.)