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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Think4Yourself who wrote (135222)7/20/2008 1:58:57 PM
From: John VosillaRead Replies (1) of 306849
 
'I personally think that the financial institutions are still in a lot of trouble, even more than the homebuilders, but am not shorting either group at this time'

For sure they are all in trouble for a long time. Inflation pressures and higher interest rates actually will make it hard for recovery as the credit crunch and REO inventory eventually subside..But the strong will get even stronger on the backside of this as the weak die off the next 12-18 months. Stll the stock market goes in cycles. National builders are going to get land for pennies on the dollar and runs on the smaller banks brings more depositors into the largest financial institutions and more lending activity on wide yield spreads. Folks have short memories forgetting when bad news gets taken as good news and things no one was talking about took center stage on a new cycle.. I'm sure no one predicted what transpired from 2003-05 during the dark 18 months post 9/11..Biotech index for one quietly broke out during these recent dark days.. 139.142.147.19
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