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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Travis_Bickle who wrote (146901)	9/16/2008 10:31:11 AM
From: damainman	Respond to of 306849

<----- sleepy head didn't wake up early enough to be tempted by AIG at 1.25.

To: Travis_Bickle who wrote (146901)	9/16/2008 10:32:52 AM
From: Think4Yourself	Read Replies (4) \| Respond to of 306849

The homebuilder rally really puzzles me. The current problems guarantee that credit is going to get extremely hard to get. 20% down is going to become the norm and many Americans have a negative net worth. How many can cobble together 20% just for a down payment, without committing fraud? Inflation is also likely to start taking off. Most ARM's are tied to LIBOR, which the Fed has great difficulty impacting. Even IF the fed cuts, it's not going to help housing, and the fed will be forced to start raising soon. The bullishness amazes me, and I am tempted to short housing again going into the Fed meeting.