Housing Starts' Huge Miss

Housing starts collapsed 12.3% in June, the 4th worst report in the last 5 years. Permits dropped 2.2%.

Futures barely budged on the news……as the 4% GDP growth narrative continues to dominate the headlines (Kudlow takes the mic at Delivering Alpha) and algos continue to be well-supported by favorable currency moves……and, conveniently timed dips in VIX.It remains to be seen whether or not carbon-based investors will read the tea leaves and determine that high interest rates and crashing housing starts might affect the actual economy. It certainly used to — until 2009-2016 when the Fed began injecting trillions into the money supply. Is it just possible that tightening might have the opposite effect?