Dr. Housing Bubble 01/10/08

[Crewleader]

Real Homes of Genius: Today we Salute you Costa Mesa. False Bottoms in Action. $300,000 Off in 1 Year!

Well that was an interesting day on Wall Street. First we get a notice that holiday sales were lackluster and we are teetering on the verge of recession (if we aren’t already in one). Goldman Sachs is predicting a recession by the end of the year and stocks were heading sharply lower today. Yesterday, stocks shot up toward the end of the day for no apparent reason (PPT) which is becoming a more and more common occurrence and today, stocks went up strongly on rumors that Bank of America was going to take over Countrywide. Of course you will remember that BofA came in and bought $2 billion worth of Countrywide and before the news today, was looking at a loss of $1.4 billion. The stock shot up 50 percent which shows how volatile the market is right now. Why BofA would buy Countrywide especially on the verge of insolvency is beyond me but the major theme here is there is way too many people in the know playing this like a chess game for short term market moves; which means if you are an average Joe trying to make a buck investing you are going to get your you know what handed to you. The fundamentals still show the company as extremely weak. In fact, early today Countrywide’s entire market cap was lower than its REO portfolio! Yesterday, they also reported that foreclosures soared and doubled:

In Wednesday’s monthly operating report, Countrywide said, among the 9 million mortgages for which it processes payments, the foreclosure rate doubled in December, to 1.44 percent from 0.7 percent a year earlier. Defaults rose to 7.2 percent from 4.6 percent over the same time.

Yes, great time to hop into the market. BofA risks inheriting a toxic mortgage portfolio and all the bad press that will be coming out with stories like this one from the NY Times about the company. Either way, even if the deal does go through it won’t do anything to stop the declining housing market.

The market also jumped up since the Fed essentially gave a verbal acknowledgment that they are willing to do anything and everything to keep this inflated credit bubble going without facing the correction which the market is desperately trying to have.

http://www.doctorhousingbubble.com/real-homes-of-genius-today-we-salute-you-costa-mesa-false-bottoms-in-action-300000-off-in-1-year/

[Double T]

1. Sanity and rational thinking no longer applies.

There is no way to STOP this vicious monster known as the American economy from sinking into a depression. bushco aided and abetted by bernanke will attempt to buoy up bushco's economic Armageddon until January 20, 2009. Every FED rate cut will send the US Dollar lower which will fuel inflation and lead to the demise of the consumer. Crash is inevitable.

[Adsos Letter]

2. Ya' know...the native Americans understood it (not that they could do much about it)

but if ya' let the natural wildfires burn off the brush in the forest every once in awhile, the forest stays healthy...

Take unnecessary actions to do more than contain that stuff, and you eventually lose the whole forest.

Thanks again Crewleader, and all you other people who post so much good info for us; hope you all had a great holiday. :hi: