Yabba Dabba Dooo FINANCE

Yabba dabba doo finance- we're sorry- we mean to say "Yahoo Finance".

(Today on Yahoo Finance)
By MARTIN CRUTSINGER, AP Economics Writer Martin Crutsinger, Ap Economics Writer – 1 hr 24 mins ago

WASHINGTON – The nation is on track to build fewer homes this year than at any time since the end of World War II, adding to the woes of an economy that analysts said Friday has almost certainly entered a recession.


What ? its time AP gets a new economics writer. Martin Crutsinger has got it all wrong ! Crutsinger is saying that because the "nation is on track to build fewer homes this year" he says it's "adding to the woes" of the economy ? What have we been saying in the past week, as well as the Wall Street Journal and John McCain- (although remember we said it first) home prices need to stabilize- forclosures to stop- its the only way to sop up excess housing inventory- that is the ONLY way to stop the freefall in America's greatest asset cache for America's main economic engine- the consumer. (including Joe-the-Plumber). LNR called for a restriction in home building permits and halting forclosure evictions (not forclosures per se) and hope that home builders will be wise enough- or bankrupt enough- to stop building for a while until the market demands it- and home prices at least stabilize- if not recover slightly. The drop in value in homes has taken out trillions in equity that homeowners were counting on for retirement, borrowing against, and peace of mind. That confidence makes people spend in the economy, take that away- and you stop the engine that drives 2/3'rds of the economy. As we also said before, with asset destruction (home equities) you deprive collateral assets against which banks can loan.

About Martin Crutsinger: Actually, there are quite a few internet posts about Crutsinger getting it "all wrong" that you can research yourself. For straight economic reporting, cannot AP get someone a little more competent ? On Feb. 2 2007, a blog called "State 29" calls "Martin Crutsinger from the AP failed math class" alleging that Crutsinger used inaccurate numbers to impress the White House. In 2006, "Bizzyblog" said of Crutsinger:

January 3, 2006 Media Blog
Martin Crutsinger of AP Botches Reporting on the November Construction Spending Report

We can't say enough about CNN and AP messing up on financial news and analysis.