For quite some time now we have been sharing with you that the US Housing Market has been in the eye of the hurricane, well it's starting to move out of the eye. Winds are building and the back half of this housing hurricane will prove to be very, very strong. If you haven't shorted housing (SRS) or the markets in general (we like SDS and SPXU) you may find yourself with a dislocated hip from having kicked yourself so hard at some point in the next 6 months or so (it will likely be after the upcoming elections.) In any event here are this weeks mainstream media articles of note . . .
http://www.huffingtonpost.com/2010/08/06/fannie-mae-home-prices-to_n_672776.html
Fannie Mae now saying prices will continue dropping - DUH!
http://www.reuters.com/article/idUSN0622002720100807
Reuters Govt officials acknowledge just how pathetic results of subsidized loan mod programs really are . . . here come a lot more foreclosures!
http://www.prnewswire.com/news-releases/majority-of-american-families-plan-to-spend-less-than-last-year-or-nothing-at-all-on-back-to-school-shopping-according-to-rbc-consumer-outlook-index-100025504.html
families not spending money on back to school? Yeah, the economy is rebounding . . . are you high? Look around at the people you know, how many are better off financially than they were 1, 3, 5 or even 10 years ago? Ok take a look at how many are not. Does that look like improvement to you? Forget the statistics and stories that politicians and Realtors constantly throw at you (we all know how famous those two groups are for honesty and integrity) look at your own experiences and observations. Hmmm
http://www.dailymarkets.com/economy/2010/08/04/imf-us-real-estate-sectors-could-bring-banking-crisis-20/
US housing market continued correction could create 2nd wave of financial crisis . . . could or will???
http://news.yahoo.com/s/usnews/20100803/ts_usnews/housingmarkettakesanotherstepbackwards
US News & World Report Home sales hit new low. After huge drop in pending sales from April to May, pending sales again took another big hit from May to June
http://www.bloomberg.com/news/2010-08-01/greenspan-says-decline-in-u-s-home-prices-might-bring-back-the-recession.html
Bloomberg Former Fed head Greenspan warns of double dip
http://www.forbes.com/2010/07/26/employment-recession-economy-finance-opinions-contributors-mallory-factor.html
Forbes.com Would the government really spin jobs numbers just for political purposes??? Duh! If all the people who the government claims have quit looking for jobs (because they are so discouraged) were counted in unemployment numbers, we would be closer to Spain’s 20+% unemployment rate than we are to the highly inaccurate 9.5% our political machine wants us to see. Stop and ask yourself, with all of this recovery that is supposedly happening, who do you know that is better off financially now than 1, 5 or even 10 years ago??? Now ask yourself the converse, how many people do you know who are worse off? Hmmm, what does that tell you about the real economy, not the fairytale being spun by those in Washington DC???
