4 replies to this topic

[Tor]

http://www.marketwat.....2DC8B57DFE2F}

Market get propped up to compensate for lost wealth in housing?

[redfoliage2]

http://www.marketwat.....2DC8B57DFE2F}

Market get propped up to compensate for lost wealth in housing?

One bubble is enough for doing a lot of harm to the economy. With tow bubbles (housing and stocks) together that's exactly like in the year 1929.

[briarberry]

builders - things don't seem to have improved in January . “D.R. Horton Inc., the largest U.S. home builder, on Monday said net sales orders in January continued to fall compared with a year ago, but its cancellation rate for the month was about the same as that seen in the most recent quarter.” D.R. Horton Inc., Pulte Homes Inc., Lennar Corp., Centex Corp. and Toll Brothers Inc., the five biggest U.S. homebuilders, said plummeting land prices cost them a combined $1.47 billion in the fourth quarter.” . Toll’s preliminary [first-quarter] results “Toll Brothers Inc. said it may post quarterly writedowns as high as $160 million or more, which would handily top its previous estimate for all of 2007. Net of cancellations, first-quarter contracts fell 33% to 1,027 units from 1,544 units in the first quarter of fiscal 2006. The cancellation rate was 29.8% in the first quarter.” “‘Toll’s preliminary [first-quarter] results show a continuation of the weak demand that has plagued the builders in recent quarters,’ wrote Nishu Sood at Deutsche Bank. ‘Management’s recent optimism is notably absent following [first-quarter] results that showed continued order declines, elevated cancellation rates and the likelihood of additional significant write-downs,’ he added.” Toll's expected to release full first-quarter results on Feb. 22

[jawndissedi]

http://www.marketwat.....2DC8B57DFE2F}

Market get propped up to compensate for lost wealth in housing?

Absolutely. FEMA's already been put in charge of the rescue effort.

Hakuna matata.

[OEXCHAOS]

I hardly would call stocks a bubble. If they are in a bubble, then this will be the first time ever that a lot of smart money was taking companies private hand over fist. Looking at P/E's too, stocks aren't anywhere near a bubble. Mark