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The Daily Trascript: George Chamberlin's Money in the Morning
The *Commerce Department* reported this morning that *new home construction activity* fell in July to the lowest level in 17 years. Even worse, the number of building permits issued during the month fell to a 26-year low. I hope people realize what the true consequence of this information is. Once the real estate market recovers -- and it will -- we are going to be faced with a real crisis. With little or nothing in the housing pipeline, supplies of homes for sale will be quickly consumed. And, what did you learn in Economics 101? When the demand exceeds supply, prices can go only one direction, up.
