Existing home sales rocket upwards in December, no inventory

From the WSJ:

U.S. Existing-Home Sales Rebound in December

The U.S. housing market entered 2016 after a year of strong sales, rising prices and dwindling inventories, factors supporting the economy but also likely to cap future gains for the sector.

Existing-home sales rose 14.7% in December from the prior month to a seasonally adjusted annual rate of 5.46 million, the National Association of Realtors said Friday. For all of 2015, sales reached 5.26 million, the highest annual level since 2006, underscoring the long slog back from the housing bust.

But new-home construction hasn’t been keeping up with demand, leading to tight supplies and rising prices.

“In addition to insufficient supply levels, the overall pace of sales this year will be constricted by tepid economic expansion, rising mortgage rates and decreasing demand for buying in oil-producing metro areas,” said NAR Chief Economist Lawrence Yun. He is forecasting a meager 1% rise in existing-home sales for all of 2016.

Inventories of existing homes for sale fell 12% to 1.79 million in December. At 3.9 months’ worth of supply, inventories are at the lowest level in nearly a decade, the Realtors’ group said.

The national median home price, meanwhile, rose to $224,100, up 7.6% from a year earlier. That marks the 46th consecutive month of year-over-year price gains.

This entry was posted in Economics, Housing Recovery, National Real Estate. Bookmark the permalink.

119 Responses to Existing home sales rocket upwards in December, no inventory

  1. grim says:

    NOAA now calling for 18-24 in NYC? Wow.

  2. grim says:

    My flight to Portland on Tuesday was already cancelled yesterday afternoon, but they were able to rebook me through Denver, surprisingly.

  3. grim says:

    Wildwood already reporting a foot of snow.

  4. Hughesrep says:

    About a foot here already on the border of Monmouth / Ocean. Seems like a heavy, wet snow too. Going to be a pain to shovel. Wind is crazy too.

    Plows covered the driveway already.

  5. grim says:

    Wind is nuts up here as well, otherwise I’d have gone out and made a pass with the snowblower.

  6. leftwing says:

    don’t bother, just shoveled the steps to get out, covered again lol.

  7. The Great Pumpkin says:

    This storm is the real deal.

  8. 1987 Condo says:

    Yikes, Channel 7 just used the “30” number for N Jersey

  9. Raymond Reddington formerly Phoenix says: says:

    Have at least a foot up here in Washington Twp, Morris County. Dry and fluffy. On a mountain, extremely windy.

  10. Grim says:

    At this rate three feet by tomorrow morning doesn’t seem outrageous.

  11. Njescapee says:

    Windy here in the keys

  12. Grim says:

    Don’t be jealous

  13. The Great Pumpkin says:

    Actually some pretty solid advice. Good article.

    “Lynch once summed up his dim view of market timing this way: “Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.”

    Another example of market timing’s weakness: the Standard & Poor’s 500 from 1992 to 2012 registered a nice 8.2% annual return. What kind of return did investors earn if they missed the best 10, 30, 60 or 90 trading days during those two decades, which is about 2,500 trading days?

    Investors who missed the best 10 S&P 500 days earned half as much, 4.5% annually; those who missed the best 30 days realized zero; the best 60 days, negative 5.3%; the best 90 days, a whopping minus 9.4%. In other words, stay at a party from start to finish – don’t dart in and out if you don’t like the music or find the conversation boring.”

    Check out this article from USA TODAY:

    3 legends’ investments advice

    http://usat.ly/1VfYGUs

  14. Libtard in Alaska says:

    24-30 boys. Knew it.

  15. grim says:

    Mt Holly has 30-36 in the southern part of Morris County.

    http://www.weather.gov/phi/winter

    And that ain’t even the “worst possible”.

  16. 1987 Condo says:

    I’m sticking with my 0-30 prediction

  17. Fast Eddie says:

    No inventory and number of sales rise. What a load of bullsh1t. The housing syndicate serves virtually no f.ucking purpose whatsoever. It’ll be another generation before people who got fleeced a decade ago can recover. Most will d1e in their current abode before they can sell at break even.

  18. grim says:

    They are saying Northeast up 11.9% YOY.

  19. 1987 Condo says:

    just did driveway and sidewalk, sidewalk was up to height of my blower, 20 inches, I assume due to plow over flow…otherwise minimum 1 foot+ in the Grove

  20. Ragnar says:

    I just used my snowblower at 10, and snow height was 12 to 18 inches already. My dog appreciated having a place to walk.

  21. grim – You bought Fisher’s book to preview for me, right?

    My flight to Portland on Tuesday was already cancelled yesterday afternoon, but they were able to rebook me through Denver, surprisingly.

  22. LOL. It looks like I’ll even be able to wear my low-top gore-tex trail running shoes this weekend. http://www.weather.gov/box/winter

  23. Juice Box says:

    Yeah here is to hoping the neighborhood kids want to make a few bucks. 3rd season here with no snowblower.

  24. Has this story gotten much play in NY ?

    http://www.newsday.com/news/region-state/colin-kingston-killed-ex-girlfriend-kelsey-annese-matthew-hutchinson-before-suicide-cops-say-1.11337385

    I am in agreement with the girl’s Dad’s SO (I read this quote and I knew immediately she was from NJ):

    “This has been a real bad 24 hours for Ron Annese my boyfriend, he has lost his heart and soul, Kelsey his daughter,” wrote Nancy Paller, Kelsey’s father’s girlfriend.

    “Nothing I want to say can bring her back, but I want to say a lot to the a–hole that took her life, such a piece of sh-t.”

    http://nypost.com/2016/01/18/students-found-dead-near-ny-college-campus/

  25. The Great Pumpkin says:

    This this is the worst snowstorm I have ever seen.

  26. Libturd at home says:

    Juice.

    You blew it. Don’t buy one now!

  27. [24] Juice – that era was long over when I last lived in Nutley, NJ back in the winter of ’95-’96. The only HS students I saw outside was one night when I decided to go to the park across the street to do some solo sledding. Forget about shoveling, I had to teach those newbs how to sled! I showed them how to do trains, planes, etc. They didn’t even know how to take a running start with a flexible flier. They said to me, “Wow! Where did you learn all this stuff?”

    Yeah here is to hoping the neighborhood kids want to make a few bucks. 3rd season here with no snowblower.

  28. Besides, do teens have anything that would allow them to text and shovel at the same time?

  29. D-FENS says:

    I guess I should get around to fixing the snowblower today.

  30. Fast Eddie says:

    They are saying Northeast up 11.9% YOY.

    That’s a bunch of bullsh1t. The syndicate prints whatever number they feel like printing. It’s a sales pitch. And nobody has a handle on fixing a swindle and practicing f.uck d0uchery like the housing tour guide syndicate. They are at the bottom of the list when it comes to truth and disclosure.

  31. Well, that’s probably 9 Republican votes lost:

    At least nine people died in storm-related crashes in Tennessee, Kentucky, North Carolina and Virginia, the Associated Press reported. In Virginia alone, nearly 1,000 car crashes were reported by late Friday.

    http://www.usatoday.com/story/weather/2016/01/23/blizzard-continues-slam-east-coast/79217258/

  32. grim says:

    NOAA just bumped a big chunk of NNJ to the 24-30 mark.

  33. JJ-related, last century, blizzard throwback:

    The Original NJ ExPat says:
    October 26, 2012 at 6:15 pm
    JJ – reminds me of Blizzard winter of ’96-’97. I lived in Nutley with my gf, but had a winter apartment in Huntington Village to be close to my job in Hauppauge during the week. I was a consultant, so I was getting there to make my bank no matter what. One or two day missed equaled the rent of my furnished studio for the month. Anyway, I’m in Nutley on Sunday evening as the blizzard hits around 6PM as I usually drove in Monday mornings and headed home Friday night. Governor Whitman makes an early declaration that only emergency vehicles allowed on NJ roadways. Oh sh!t, I better get in my ’89 4WD Chevy Tracker and get into NY before they pull me over in NJ for being out. I decide to cut through Manhattan as it’s flatter and I figure just a couple of stuck beataers or one jacknife on the Cross Bronx will stop traffic forever. Almost 8 inches of snow on the ground in mid-town already, but I make my way to the Queens-Midtown tunnel. When I emerged onto the LIE, I couldn’t believe my eyes. Nobody on the entire road! I had the entire LIE to myself all the way out to Hauppauge. Never saw anyone except the lone spin out and plows. The entire LIE was plowed to about 4 inches of fresh snow and I’m going 50mph down the center of all 4 lanes with all the lanes to myself (patting self on back for purchase of brand new BFG off-road Radial T/A tires). I then notice a problem. I’m all alone on the road, but I see cars stuck in snow on every off-ramp. The off-ramps look to have about a foot of snow, not even plowed once. When I get off the LIE, my skid plate is digging a trench through a foot of snow (I had 8 of ground clearance). Saw a guy trying to dig out the rear wheels of his full sized Olds with a three ring binder. Anyway, I make it to Huntington where my parking lot has been mercifully plowed once, which means there’s only 8 inches of snow there now. The next morning it was thankfully plowed perhaps a 2nd and 3rd time as there was again only about 8 inches. I was the only one who made it to work Monday morning, all alone except for the guard who was stuck there from the night before. I spent the entire day picking up the phone and answering the same question from co-workers all day long, “Is anybody there? Who came in.”

    Although roads really suck now in snow. I recall some monster snow storm like almost 25 years ago and they made it a snow emergency only cars with chains and 4x4s on road. This was before every soccer mom had an suv so hardly any cars on road. I recall I had my 1976 CJ7 with the 3 inch lift kit and push and two bars and I was flying down Northern blvd like at 40mph on an empty road threw lights. It was great. Drove from Bayside to Oysterbay in a blizzard in like 20 minutes. Blew right by cops even, what are they going to do. You actually really needed the lift kit that day for ground clearance. Wish I had that beast now. Three feet of rain I would be flying.

  34. grim says:

    Need a new truck – anyone got any opinions on the Ridgeline?

    Looking for something with a bed, decent capacity, and a crew cab that can fit a car seat.

  35. Essex says:

    35. the guy could spin a yarn….

  36. Essex says:

    36. You need a Toyota SR5 re-issue…..Back To The Future….and get a matching down vest.

  37. My nephew was staying with my MIL during a snowstorm and my MIL said they could go out after the salt truck came by. My nephew kept his nose pressed to the window watching for the salt truck and then when he saw something similar, he called up to my MIL and screamed, “Grandma, I think the Pepper Truck just came by, can we go out now?”. Sadly, my nephew was about 24 years old at the time. He’s not real bright.

  38. ^^^I might have fictionalized the last two sentences of that story;-) My nephew is actually 18 now and the president of his senior class.

  39. Just a minute, I’ll dig out my old issues of Trailer Park Motoring.

    Looking for something with a bed, decent capacity, and a crew cab that can fit a car seat.

  40. Look at this smug fcuk two years ago. Murderer followed a step behind by one of his murderees.

    http://imgur.com/VxVwTRe

  41. grim says:

    $32.6k for the SR5 – Double Cab – Short Bed

    True car says a couple hundred bucks off msrp, at best.

  42. D-FENS says:

    Haven’t looked in a while, but the frontier was always the best bang for your buck. I had an 04 crew cab short bed that was dead nuts reliable. Put well over 200k miles on it. I forget exactly how many miles it had.

  43. grim says:

    Hmm, Nissan dealer up the road has a 2015 Frontier SV V6 big cab with 16k miles on it for $26k ask.

  44. D-FENS says:

    I read somewhere that there might be a high mileage diesel Colorado coming out. If you can hold off a year or two the compact pickup market is poised to be an arms race. Many models have not had an overhaul in years.

    Also I hate the ridgeline. Ugly as hell.

  45. Hey! I just saw a snow flake!

  46. grim says:

    Hm damn, the 2016 Frontier doesn’t come in a big cab 4 door.

  47. grim says:

    2016 Colorado comes in a Duramax Diesel for $39k – that’s nutzola. I’ll just by another beemer for that. I can get an almost brand new all wheel drive 5 series with nearly no miles on it for less.

  48. I have a 1972 El Camino. Gas mileage sucks, no crew cab. Has a sizable bed and air shocks, not much else, not even A/C.

    http://www.elcaminos.com/ec/weeks_ec.htm

  49. NJT says:

    #26 [GP]

    “This is the worst snowstorm I have ever seen”.

    Says a lot about your age.

    The Blizzards of ’78 and ’93 (St. Patricks day storm) easily surpassed this event.

  50. [53] I took pump’s comment as (maybe false?) confirmation that he has a window in his room.

  51. leftwing says:

    Question for our (not so) amateur meteorologists, what is the best guess on the time the snow ends, union/middlesex county?

  52. NJT says:

    #36 [Grim]

    Does it have to be new?

    Great deals to be had on slightly used but in great shape Ford F-Series.

    *Of course via private sale (Craigslist ect.) and cash only. Guy I know flips a few a year.

    When mine dies (Like a fool I did buy it new back in ‘o2 but…I got a huge discount because of my employer) this is the route I’m going.

    *Have a tenant that recently inherited an F-250 Diesel in great shape and she’s going to dump it soon. IF I have some spare change next month I might buy it and keep mine for when my son starts driving in two years.

  53. Painhrtz in from the cold says:

    Grim bought a full size titan 2008 leather fits two kids our giant german shepherd in the back .

    Had 40k miles for 20 grand. Love Hondas hate their 4wd system. It sucks.

    19 inches on my deck in morris county

  54. Libturd at home says:

    Blizzard of 93 dumped nearly 3 feet on me in Chilltown. I shoveled for three days to get my car out. This one might be pretty close., but I have 2 snowblowers now.

  55. Libturd at home says:

    Should end by midnight tonight.

  56. grim says:

    Oh yeah I’d rather buy used with low miles.

  57. This blizzard is real West-East fastball. I don’t recall seeing something like this that didn’t curl up the coast to New England. Typically we get storm results in Boston that are not even delayed from Northern NJ, we usually get the same weather at the same time. This reminds me of Sandy in it’s deviation from the norm. Tropical storms usually run up the East Coast, they don’t curl into the NJ coast as Sandy did.

  58. I’d say we’re officially approaching a dusting of snow about now.

  59. Painhrtz in from the cold says:

    4 feet at the end of my driveway. Thanks plows. 2 feet in others heading over to the neighbors to do theirs

  60. walking bye says:

    F series are generally good, just stay away from the model years with the sprak plug issue, 2006 I think. Also lots of good deals on Doge Rams with some neat technology.

  61. It looks like we’re upgraded to 4-6″. Damn. I’m going to have to have to put on my high-top Salomon shoes to walk to the liquor store;-)

  62. Libturd at home says:

    These models are getting amazingly accurate. At the time of this forecast, the moisture from this storm (the low) was in the Pacific off of the Washington coast.

    Libturd supporting the Canklephate says:
    January 19, 2016 at 12:02 pm

    This Saturday storm is looking to be the real deal. Every single model is in agreement. There will be a full moon high tide on Saturday morning and winds are projected to approach hurricane strength. I don’t mean to scare people because it’s still over four days out, but if I had a house at the shore that wasn’t up on stilts, I’d be weather proofing it the same way one would for a major hurricane. Inland, definitely fill your cars up with fuel on Thursday and test your generators, heavy winds and heavy snows are the recipe for power outages. If the storm hits as it’s projected to hit right now, there could be a widespread area of snow of 18-24″ with DC approaching 36″ and Philly somewhere in between. There’s also a heavy spot along the southern Jersey shore (think LBI).

    Will start looking at the storm surge maps in a day or two to see if we should prepare to pay for new PATH and NJTransit trains again. :P

  63. Just back from Cleveland Circle. It’s like a real snow storm out there, but in light of what you guys are getting, not. No snow on our car out front, completely blown away.

  64. It took me about 5 years up here before I consistently remembered to not call the “T” the Path. It’s understandable if you come from NY metro to Boston. Every one of the T lines is a subway in the city and above ground on the outskirts. You also have to learn the difference between town and city. Boston, apparently, is not a city.

    NJ : “I’m going to take the PATH into the city.”
    MA: “I’m going to take the T into town.”

    Will start looking at the storm surge maps in a day or two to see if we should prepare to pay for new PATH and NJTransit trains again. :P

  65. [70] Stu – I was fascinated by those storm surge maps during Sandy. I can’t believe that the mainstream media never picked up on that advance warning, but then again, I wouldn’t have a had a clue either without your posts. Thanks.

  66. Essex says:

    Awesome dump….easily two feet. And as snug as a bug in a rug. Those double pained Pellas really do the trick.

  67. [74] I guess when they are paid off they’ll be double-paned?

    Those double pained Pellas really do the trick.

  68. We have circa 1926 original counter-weighted(with ropes, not chains), wood frame double-hung windows throughout our place. Super-heavy and single pane. Somewhere along the way I guess all the windows in the building received 1960’s era storm windows and screens. They are aluminum framed, but the frames are brown, not dull natural aluminum. Old effing school for sure, but I think what makes it work is the 4 inch gap between the double-hungs and the storm pane. Other owners have had their windows replaced with modern equivalents, but I don’t see the point. I don’t even go around and make sure all the storm windows are in position until it goes below 10 degrees F.

  69. Our coldest room is our kitchen, as it is the only room that is not above a heated area. 24 degrees outside right now, 75 degrees in the kitchen. Pre-war buildings are cozy. We had a massive project a couple years ago switching our boilers over to gas. I wonder if we are saving money now? I brought up the counter argument at the time that oil goes down in price too, not just up.

  70. grim says:

    Storms over single pane windows are realistically as efficient as double panes.

    It helps to realize that even a fancy triple pane window is the equivalent of a giant gaping hole in the wall.

    Obviously, if you have a window in disrepair with huge gaps and air leaks, this isn’t the case.

    Poorly installed replacement windows can absolutely be worse than the old wood windows and storms they replaced.

  71. grim says:

    Which is a huge shame as beautiful old windows get ripped out and replaced with absolute garbage, poorly installed.

    Most of the replacement window business is a sham.

    I saw a nice storm window system a few weeks back. It used a nice track system, very minimal – you’d have a hard time noticing it, and it used not only Low-E glass, but it used anti-reflective coating glass.

    You are probably scratching your head on the second part, but if you saw it in person, you would absolutely understand the difference. You can’t see the storms, they are nearly invisible from the curb. Not only that, but they make it that much easier to see the window behind them when there is glare.

    The other factor many don’t consider is the loss of heat gain during the winter on the south side of the house.

    Also, if you are someone who keeps their shades closed – realize that a good set of light colored cellular shades will probably provide a similar benefit, especially in situations where you can open the shade to allow for more solar gain in the winter, and close it to reduce the solar gain in the summer. You’d get all the benefits of a new window at a fraction of the cost.

  72. grim says:

    Realistic R-Value of a NJ exterior wall assembly is something like R-15.

    Single Pane R-1
    Single Pane w/ Storm R-2
    Double Pane R-2
    Double Pane/Low-E/Argon R-3

    The reason why single panes with storms are nearly as good as double panes is the large air gap between the window and the storm, which the double pane doesn’t have.

  73. grim says:

    There is a study out of Vermont that showed a historic restored wood single pane window and storm were able to achieve an Energy Star rating.

    There are windows that provide an outstanding amount of insulation value, but they come with two costs. The first is that they are upwards of $1,000 a single window, which is outrageous. And the second is that they have light transmittance values lower than 25%. Yeah, a window you can barely see out of, that lets little light in. What’s the point?

  74. grim says:

    Dollar for dollar, spend some time adding insulation where the insulation that exists is poor, or eliminating air gaps elsewhere in the house. Adding a layer of loose-fill insulation in your attic will be faster, easier, you can DIY it, will cost a fraction of what new windows would cost, and would provide realistic benefit.

  75. grim says:

    Made quick work of the snow this morning, not too bad. The drifting on the deck was the worst of it. Some crazy big drifts on the roof, no way I’m going up there though. Maybe I’ll break out the leaf blower and the gutter extension.

  76. Ben says:

    The reflective foil works as a great addition to your insulation. My whole home is lined with R-30 but I put the foil on top of it all throughout the 2nd floor. Pretty ridiculous how well the house holds temp.

  77. [89] That TJ’s has a very similar look to a local Walgreen’s that suffered a similar fate a few years ago. Roof collapse after a large snowfall. Building needed to be erased.

  78. Juice Box says:

    Just Great, school is closed tomorrow!

  79. [87] Bigger casual labor pool for shoveling? Oh that’s right, they haven’t figured out a way for kids to shovel that keeps their thumbs free for important stuff;-)

    Just Great, school is closed tomorrow!

  80. [82] grim – When we expensively re-pointed our bricks several years ago and put new roofs on the place (about $8,000 per unit assessment, IIRC) it was determined that there was an 18 inch air gap between the top floor ceiling(3rd storey) and the roof. We filled the gap throughout with injection foam and saved $15,000 on heating costs our first year (which is pretty substantial for a 50 unit complex).

    Dollar for dollar, spend some time adding insulation where the insulation that exists is poor, or eliminating air gaps elsewhere in the house. Adding a layer of loose-fill insulation in your attic will be faster, easier, you can DIY it, will cost a fraction of what new windows would cost, and would provide realistic benefit.

  81. Live report from Morris County — 30″ measured in neighboring Morris Plains.

    About the same here; more or less accounting for drifts. Did one pass with the snow blower ~16:00 Sat afternoon. Glad I did, as the snow was then topping out the mouth of the blower. By 1:00 AM however, skies were severe clear and the full moon reflecting off fresh snow gave an eerie look and feel outside.

    Another pass with the blower this morning for the 3-4″or so that fell yesterday evening; dug out mailbox and hydrant (town bastards better not plow it or my driveway in again); cleared a single cut path from the street to the garage for new neighbor across the street (uphill side). His driveway is the same slope as mine (~10% grade), and at least 50% longer, with a switchback. Said he was waiting on a plow guy to show up and take a look. Gonna need one hell of a truck to clear that pushing 30″ uphill.

    Still supremely happy with my snowblower purchase.

  82. ONJExPat [33];

    Well, that’s probably 9 Republican votes lost:

    At least nine people died in storm-related crashes in Tennessee, Kentucky, North Carolina and Virginia, the Associated Press reported. In Virginia alone, nearly 1,000 car crashes were reported by late Friday.

    Interesting contrast with machine-politics blue states like MA, IL, etc. — there when constituents die it increases Democratic vote totals.

  83. Grim [36];

    Do you take the EV out in this weather?

  84. 1987 Condo says:

    Brother on S.I., still not plowed once, 2 pm sunday. 24 inches sitting in street

  85. Grim says:

    We lemon law’ed the EV. Have an accord in its place, which doesn’t compare to the legacy.

  86. Did Honda shelve that project? They weren’t available everywhere, right? We have two plug-in parking spaces at work, the closest two to the entrance that most employees use. In the last 18 months I saw exactly one car plugged in and that was about 18 months ago. No traction whatsoever up here.

    We lemon law’ed the EV. Have an accord in its place, which doesn’t compare to the legacy.

  87. Essex says:

    My windows rule. You cannot discount perfection. Look it up.

  88. the Original NJ ExPat says:

    I just looked it up. Money spent is money gone.

  89. Essex says:

    True. Without a doubt. But when the wind is howling and if us so quiet inside that you hear nooooooooothing. Not a sound, It’s great.

  90. [99] An Ivy League education is something to crow about too. Is it worth $220K?

  91. I’ll go a step further and offer that I enjoy the rattling of our double-hungs loose in their ancient tracks when the wind really ratchets up. character.

  92. Essex says:

    I am thinking just this minute that yes darn it worth every penny.

  93. Essex says:

    Vigoda>Jean Stapleton

  94. Sx [104];

    Jean Stapleton (Edith, from All In The Family) died in 2013. Must be something going around FB — like Rue McClanahan, who seems to die every two years or so (actually died in 2010).

  95. Essex says:

    105. Dang….that’s awkward.

  96. Comrade Nom Deplume, back at sea level says:

    About 2 feet from snowmageddon. Roads her clear but some narrower. A couple of 35 degree days should fix that. But in liberal DelCo and Philadelphia, and across the line in Delaware, lots of roads yet to see a plow

  97. Comrade Nom Deplume, back at sea level says:

    Good to be on a “connected” street. I saw plows pass several times and it was clear blacktop this morning.

  98. The Great Pumpkin says:

    Destroying the myth that private is better than public.

    “By now privatization has been thoroughly scrutinized – there are numerous studies, surveys and, indeed, surveys of surveys of its effects. The consistent conclusion: there is no evidence of greater efficiency.2 So, the best outcome one can hope for is that private-sector ownership or involvement is no worse than what the public sector provides – hardly a turn-up for the books. The largest study of the efficiency of privatized companies looked at all European companies privatized during 1980-2009. It compared their performance with companies that remained public and with their own past performance as public companies. The result? The privatized companies performed worse than those that remained public and continued to do so for up to 10 years after privatization.2

    Even in the super-competitive telecoms sector, where customers have benefited from lower costs and increasing variety of services over the years, this result holds. A global survey found that ‘privatized sectors perform significantly worse’ than telecom companies remaining in state hands.2

    Healthcare is where this myth is really given the lie. In the US, where healthcare spending is at its peak, with private spending on healthcare exceeding public spending, basic health outcomes are worse than in Cuba – which spends a fraction of the US amount per person in a totally public healthcare system (see table).”

    – See more at: http://newint.org/features/2015/12/01/private-public-sector/#.dpuf

  99. The Great Pumpkin says:

    A 2012 report by the US Institute of Medicine was damning:

    ‘30 cents of every medical dollar goes to unnecessary healthcare, deceitful paperwork, fraud and other waste. The $750 billion in annual waste is more than the Pentagon budget and more than enough to care for every American who lacks health insurance… Most of the waste came from unnecessary services ($210 billion annually), excess administrative costs ($190 billion) and inefficient delivery of care ($130 billion).’2

    That same year government had to step in with the Affordable Care Act (also known as ObamaCare) to try to rectify a bloated system that was clearly failing poor citizens.

    In Britain, creeping part-privatization of the National Health Service through outsourcing has led to similar ‘penny wise, pound foolish’ outcomes. One example: in Cornwall, the private contractor Serco, which provided call-centre cover for out-of-hours GP services, decided to economize by replacing clinicians with call-handlers without medical training, who followed a set of computerized cues to make decisions about ambulance call-outs. This resulted in a very expensive four-fold increase in ambulance call-outs with the cost to be borne, of course, by the taxpayer.3

    – See more at: http://newint.org/features/2015/12/01/private-public-sector/#.dpuf

  100. The Great Pumpkin says:

    ❛Privatization means you take a public institution and give it to an unaccountable tyranny. Public institutions have many side benefits. They’re not out for profit. They may purposely run at a loss because of the side benefits. So, for example, if a public steel industry runs at a loss it’s providing cheap steel to other industries. Maybe that’s a good thing. Public institutions can have a counter-cyclic property. So that means that they can maintain employment in periods of recession, which increases demand, which helps you to get out of recession. Private companies can’t do that in a recession. Throw out the work force because that’s the way you make money.❜

    Noam Chomsky, speaking in the film The Corporation (2003)

    – See more at: http://newint.org/features/2015/12/01/private-public-sector/#.dpuf

  101. The Great Pumpkin says:

    Now please try to convince me that privatization is the answer….lmfao

  102. The Great Pumpkin says:

    750 billion in waste in the private healthcare industry alone. That’s bigger than the pentagon’s budget. Private sector sure knows how to rob, and we are sitting here worrying about blaming teachers for our taxes. People are lost. Amazing how they focus on govt waste and not public waste, like they are not a part of the same economic system. It’s like ignore private waste, but focus on public waste because I pay taxes. Yes, that sure makes a lot of sense. And people think the public sector is responsible for the mess….too funny

  103. The Great Pumpkin says:

    Good ol private sector can do no wrong, if only everything was privatized. Then everything would be great and run efficiently.

    What’s sad, I’m laughing at this type of mindset, but the majority believe this bs.

  104. The Great Pumpkin says:

    Powerful statement and dead on. How many of you carry this flawed thought process that private companies equal efficiency.

    ❛People often don’t understand the engine that drives corruption. Particularly in India, they assume government equals corruption, private companies equal efficiency. But government officials are not genetically programmed to be corrupt. Corruption is linked to power. If it is the corporations that are powerful, then they will be corrupt.❜

    Arundhati Roy, Indian author and public intellectual

    – See more at: http://newint.org/features/2015/12/01/private-public-sector/#.dpuf

  105. Ragnar says:

    Pumpkin is now reading the hard left rags. Nobody is going to try to convince you of anything, because nobody wants you on their side.

  106. Builders better hustle and get those new houses made, it seems. Nice numbers, so glad to see them!

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