...fools? The PPT? Those that believe big LBOs are about to happen, or maybe those that believe huge Fed rate cuts will reinflate the bubble? There is big money buying these, not just a few retail folks. Billions were wiped out in the sub-prime meltdown and it is still early...yet there are buyers for everything and the Dow defies gravity. I believe it is GREED and CNBC driven euphoria. The 'geniuses' will write books about these periods of mass hysteria and claim they all saw it coming. The reality of all the bad news is dismissed as nothing important, and the Wall Street bulls scream to buy every dip. Millions paid way too much for houses, they are about to get crushed. Bob Toll finally admits it is not getting any better and HB stocks go up? We are going to crash and even the PPT won't be able to stop it...IMO.
You are correct. I can only think short coverings cause the bounces right now. I believe that most people are complete morons (Like most realtors here in CAL that have told everyone that REal Estate can't go down). This is clearly going to be the greatest crash since 1929, The wife and I are livin gin our little (540k mountain cabin) house that we think will drop in half. We hope it does so we can by that beach home for a mil. Now the same houses have asking prices of 2.5. Hell, I am hoping maybe even less than a mil. This is going to get ugley and many homebuilders will struggle to survive.
I can't figure that out myself, but stocks can't go straight down right? I believe prior to the last 2 trading days, we had 6 or 7 consecutive down days for the HBs so it was just a technical bounce IMO coupled with option expiration tomorrow.......that is the only explanation i have b/c today's macro data was HORRID.....PPI was way above expectations and both Empire and Philadelphia Fed manufacturing came in way below expectations and we went up?????.....the only bright spot was declining initial and continuing claims jobless claims which i still can't figure out why they are declining when we are having MASSIVE UPON MASSIVE LAYOFFS IN LENDING AND CONSTRUCTION....I refuse to believe that these jobs are being more than offset by job creation in other industries.....it simply doesn't make sense unless another bubble is being created in another industry