Sharp Drop in Home Construction Good News?

Home construction dropped by 6.3%, a much sharper decline than the 1.6% that economists were expecting. Headlines screamed "Worst drop since 1991!" and "Another 17-year low!" but I have to ask myself (and my faithful readers) if this is actually such bad news. Record numbers of houses sit in inventory pleading for buyers. Foreclosures in most of the country are still rising adding to housing inventories and depressing prices. Demand for homes continues to decline as potential home buyers sit on the sidelines fearful of job losses, investment losses, the US's future; do I even need to go on?  In any event, it seems to me that the best way to combat the rising inventory issue and slack in demand is to perhaps STOP BUILDING NEW HOUSES!  Just for awhile.  For the love of god.  I know that this isn't necessarily positive for the construction or homebuilding industries but at least it reassures us that they have finally figured out what is going on the economy.  Although I still believe we are probably still a ways away from the bottom in housing, this news means we might be inching closer.  And that, my friends, is good news.