By Michael Snyder
The similarities between 2007 and 2014 continue to pile up. As you are about to see, U.S. home sales fell dramatically throughout 2007 even as the mainstream media, our politicians and Federal Reserve Chairman Ben Bernanke promised us that everything was going to be just fine and that we definitely were not going to experience a recession. Of course we remember precisely what followed. It was the worst economic crisis since the days of the Great Depression. And you know what they say - if we do not learn from history we are doomed to repeat it. Just like seven years ago, the stock market has soared to all-time high after all-time high. Just like seven years ago, the authorities are telling us that there is nothing to worry about. Unfortunately, just like seven years ago, a housing bubble is imploding and another great economic crisis is rapidly approaching.
Posted below is a chart of existing home sales in the United States during 2007. As you can see, existing home sales declined precipitously throughout the year...
Now look at this chart which shows what has happened to existing home sales in the United States in recent months. If you compare the two charts, you will see that the numbers are eerily similar...
New home sales are also following a similar pattern. In fact, we just learned that new home sales have collapsed to an 8 month low...
Sales of new single-family homes dropped sharply last month as severe winter weather and higher mortgage rates continued to slow the housing recovery.
New home sales fell 14.5% to a seasonally adjusted annual rate of 385,000, down from February's revised pace of 449,000, the Census Bureau said.
Once again, this is so similar to what we witnessed back in 2007. The following is a chart that shows how new home sales declined dramatically throughout that year...
Read the rest here:
http://theeconomiccollapseblog.com/archives/exactly-like-7-years-ago-2014-is-turning-out-to-be-eerily-similar-to-2007
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