Economic analyses that do not factor in what’s happening in the real estate market have proved to be vacuous in the extreme. This is why 99% of all economic forecasts are wrong. As the director of the Land Values Research Group showed yesterday: “It’s the housing crash, stoopid.”
ps. STOP PRESS
The GDP figure was released today after I posted the above. Dr Gavin Putland was proven correct – although he admits he believed the decline in growth may have been even worse.