Sep housing starts just shy of 8-year high

Strong demand for rental units pushed September housing starts to the highest level in three months and close to the highest level in eight years. So, we're in recession? I don't think so. The deficit is too small? The deficit is what it is. We should be focusing on top line government spending.

Jeff Gundlach's, "We'll never see 1 million housing starts in my lifetime," smashed 10 days after he spoke it

Oh well, that didn't take long. Another "genius" hedge fund manager bites the dust on another ridiculous prediction.

I wrote about this one here.

Today's report:

HOUSING STARTSPrivately-owned housing starts in April were at a seasonally adjusted annual rate of 1,072,000. This is 13.2 percent (±13.6%)* above the revised March estimate of 947,000 and is 26.4 percent (±11.8%) above the April 2013 rate of 848,000.

Here is the link at Census.gov.

Jeff Gundlach: "We'll never see 1 million housing starts again in my lifetime." Sounds like Pickens' infamous prediction about nat gas.

Does Gundlach have a terminal disease that he's hinting to?

I don't know, this kind of kooky prediction sort of reminds me of the prediction T. Boone Pickens made back in 2008 or 2009 (can't remember exactly), when he said, "We'll never see $2 natural gas again in my lifetime."

Gas was like $9 or something at the time and it promptly fell to, $1.90 in 2012.

Gundlach's had some success, but maybe he's starting to go off the rails like the rest of them now.

By the way, doesn't he look a little crazy in that pic?

Bill McBride — Fed: Household Debt Service Ratio near lowest level in 30+ years

These ratios show the percent of disposable personal income (DPI) dedicated to debt service (DSR) and financial obligations (FOR) for households.... 

This data has limited value in terms of absolute numbers, but is useful in looking at trends.

Combo of low rates and deleveraging. No credit boom on the horizon. Fed reports inflation trending down too. Housing starts remain weak but increasing slowly. Tepid recovery continues.

Calculated Risk
Fed: Household Debt Service Ratio near lowest level in 30+ years
Bill McBride