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January 28, 2008

2007 new home sales drop worst on record

New home sales in 2007 fell by more than 26 percent from 2006, underscoring just how bad housing woes are, and indicating how serious of a recession we’re likely to have. The Fed’s three-quarters of a percent rate cut is unlikely to touch this. Nor will the government “stimulus” plan really touch something this deep. Simply put, the housing industry needs to take some more lumps.

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