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New Home Sales Fell to Record Low in 2011

U.S. new home sales fell to an all-time low in 2011, amid growing consumer distrust of a housing industry that helped precipitate the worst economic climate for middle-class Americans since the Great Depression by placing short-term profit growth ahead of the greater good.

Officially, purchases fell 46% to a record low of 302,000 in 2011, from the 560,000 new homes sold to a much smaller population in 1963, when the government began tracking new home sales. The 2011 sales figures represent the third straight record low in as many years.

The real decline is actually 67% once the data is adjusted for population growth. The Cynical Times' figure for sales-per-million Americans is a more accurate measure of the broken bond of trust between American consumers and the U.S. housing and banking industries, and the damage that can be done when the Federal Reserve abandons the middle class to predatory business interests. New home sales per million Americans fell to 962 sales in 2011 from 2,958 in 1963 - the first time annual new home sales have ever fallen below 1,000 per-million-Americans.

"I blame the Fed – front and center," said economist Dean Baker, a member of the reality-based community who is co-director of the Center for Economic and Policy Research in Washington, D.C. "Amazingly, they just didn’t see the housing bubble and just didn't see how it could affect the economy."

Newsroom Insider: How New Home Sales Mislead US

It's frustrating to watch the handful of news organizations that cover United States economic indicators screw-up the same data month after month, as they...

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