The Upcoming 2ND SWOON in housing?
ECRI Index Continues To Plunge,
++++++++++++++++++++++++++++++++++++
Note:
I do not recall ever hearing about the
ECRI index.
But David Rosenberg is the best of
the best.
++++++++++++++++++++++++++++++++++++
Drops By 2.2 To -5.7,
And Just 4.3 Away From "Guaranteed" Double Dip Territory
The ECRI weekly leading index is continuing its accelerating dive, and is now well into negative territory, hitting -5.7 for the past week: a 2.2 decline from the prior week.
Here is why, as David Rosenberg, this is a critical indicator, and why we may have just 4.3 more points to go before the critical -10 threshold:
"It is one thing to slip to or fractionally below the zero line, but a -3.5% reading has only sent off two head-fakes in the past, while accurately foreshadowing seven recessions — with a three month lag.
Keep your eye on the -10 threshold, for at that level, the economy has gone into recession … only 100% of the time (42 years of data)."
At this rate of decline -10 will be taken out in the first week of July.
And some more recent observations on ECRI from Rosie:
Suffice it to say, when the ECRI was drifting lower in 2007, it got to -3.5%, where are we are now, in November and unbeknownst to the consensus at the time that a recession was only one month away.
Remember that the economics community did not call for recession until after Lehman collapsed — nine months after it started;
and go back to 2001, and the consensus did not call for recession until after 9/11 and again the economy had been in recession for a good six months).
zerohedge.com
Posted by Kayaker here:
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ECRI
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