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To: John Vosilla who wrote (931)	6/30/2007 8:07:10 PM
From: SouthFloridaGuy	Respond to of 1718

John, there is not decisive evidence either way as whether housing will have severe ramifications on the broader economy and Wall St. It is still a two steps forward, one step back affair right now. It becomes two or three steps back if housing can alter the corporate profits landscape which to this point it has not done in a major way. Clearly the sellers' hands have been forced due to the tightening credit environment (as opposed to this year-long stalemate on prices) and that forced selling will be upon us. Even still, I don't see it affecting corporates and even if it does, the Fed has a few cuts up its sleeve with the "benign" PCE numbers. This will stimulate non-housing related assets though and "stabilize" housing though it may now be too late to rectify the fundamental damage.