Tuesday, March 26, 2013

Correlation but not causation...............?

More fun with statistics and charts.  I'm pretty sure there is a relationship between housing starts and the rate of unemployment.   I'm just not sure exactly what that relationship is.  Here is Bill McBride's take (along with an enlargeable chart).  I will continue to contend that 2003-2006 home building activity was an aberration that we should hope is not repeated.  It would be very nice if both the red and the blue lines continued their gradual upward march over the next few years.

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