HowardReal Estate Fantasies Blow in Calif, Fla, and Va.
October 20th 2006 03:11
57th st power symbol, or is it?
Williamsburg, Brooklyn, yuppie store
The fantasy is coming down. We see the press the more it is fixiated on triviality, the worse the situation. the Titanic struggle of the sports team, the Titan fills the front page of the Washington Post, while reality looms.
New data on the housing bubble burst is rather shocking. No wonder Dick Cheney wants to nuke somebody. He can't take it anymore.
Housing sales in key markets like Florida, California and Virginia (outside Wash DC beltway) are down an average of 25%. Even Fed chief Ben Bernacke is warning that the "correction" will be continuing into next year. Let's look at some other interesting effects. The big home builders are being de-erected... D.R. Horton had its orders fall by 25%. K.B. Homes orders are down 43%. So too, are down and more Beazer Homes and M/I Homes. The luxury home builder Kara homes filed for bankruptcy.
This is related to the mortgage paper in the banks, the brokerages, the hedge funds, etc of $20 trillion, which includes the huge Fannie Mae and Freddie Mac operations.
Hell is about to break loose in hedge fund land, they're just keeping it a secret. "Baby, just one more round, hey, I gotta get my cash out!".
The bubble is like a yuppie store opening up in Williamsburg, Brooklyn, in an abandoned factory. They think business is great. But the owner of the real estate is looking for an arsonist to collect on the insurance money on the 100-year old building. What happens next?
| 40 |
| Vote |
Add To: 
subscribe to this blog