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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: 8bits who wrote (43560)	5/5/2005 7:24:29 PM
From: XoFruitCake	Read Replies (3) \| Respond to of 206338

Getting burned with homebuilder. I guessed I am one of those lucky folk who get burned. I had some Tol Jan 06 put and had to sell it for a lose about a week and 1/2 or so ago when the economic data start to show a slow down. This weekend one of my neighbor sell his house in 1 days. Our houses are in a new neighborhood in Bay area. We both signed up for the house last May and the houses were completed and transacted in Nov. His asking price is about 300k above his purchase price. The scary part is how fast the house get sold (and it is a 1.3M house so it is not cheap). The housing bubble is alive and well in our Northern California. And the GM and F rating cut today don't help matter. I would think that with the GM and F bond become junk, the interest rate for junk grade bonds will go up (since there is more supply of junk bonds from GM and F) and interest rate for high quality bond will go down (since supply of high quality bond is less). The implication is that mortgage rate will be lower for quite awhile since it tracks treasury bond. Since low interest rate is the fuel that keep the house game going, I don't know if there is any slow down insight for the housing bubble yet.