02-27-2007, 01:51 PM
Sometime back I said there were a issues that would lead to a housing decline.
First the subprime brokerages are going south, because of buybacks. Look at reason 2. 27 by this websites count: http://ml-implode.com/
Second people with I/O and ARMs would start resetting and buyers defaulting. Look at www.realtytrac.com, type in a mainland zip and count the number of NODs/REOs/Auctions. These are just starting to stress the banks like HSBC, WAMU and others. A prime example is Denver of whats to come.
Third look at the bond markets subprime and and Alt A bonds as they storm to zero.
Fourth builders are letting options expire, stiffing contractors and being investigated for lying to investors.
Now many (Bernake/Greenspan/Cramer) say housing wont affect the rest of the economy. I am betting they are wrong. Mister Volker where are you now?
First the subprime brokerages are going south, because of buybacks. Look at reason 2. 27 by this websites count: http://ml-implode.com/
Second people with I/O and ARMs would start resetting and buyers defaulting. Look at www.realtytrac.com, type in a mainland zip and count the number of NODs/REOs/Auctions. These are just starting to stress the banks like HSBC, WAMU and others. A prime example is Denver of whats to come.
Third look at the bond markets subprime and and Alt A bonds as they storm to zero.
Fourth builders are letting options expire, stiffing contractors and being investigated for lying to investors.
Now many (Bernake/Greenspan/Cramer) say housing wont affect the rest of the economy. I am betting they are wrong. Mister Volker where are you now?