AHH! Deflation!

If you don't see defaltion then you are obviously not looking at lumber futures. You know? Lumber? The stuff that is used to build homes?

After the building permits data came out a few days ago many market observers were ignoring this stat in favor of the headline housing start number.

Building permits data is forward looking. And its not looking good for future housing starts now that the gravy train tax credit has expired.

Lumber futures are now down some 35% since hitting highs in late April. They should be demolishing homes that no one wants not building homes that no one wants.