| Supplementary Update:
Mar. 15/07:
While the "Homebuilder" stocks started
seriously cracking in the first week of Feb. 07 (which is
2 - 3 weeks before the big Chinese lead stock market
sell-off)... the sub-prime mortgage market actually
started forming serious cracks in approx. the 2nd/3rd week
of Jan. 07... so in a stock
depreciation comparison, the sub-prime Mortgage stocks are
leading both the Homebuilder stocks and the broader
markets lower.
In my opinion, Wall Street largely
deflected the blame for a global stock market sell-off on
Feb. 27/07 into the lap of Chinese Investor's ... what I believe
really happened on Feb 27/07 was; Chinese Investors could
no longer ignore the growing mountain of evidence that the US Housing
market was increasingly likely to be heading for some
serious longer-term damage with ripple effects, and
the Chinese just happened to be the first one's to start taking
profits, reduce risky positions, and re-allocate
investment assets en-mass.
In my opinion, Wall Street is still
largely in denial (or lying) about the true extent of the
future potential problems facing the US Housing sector and it's
ripple effects... as evidenced by virtually all the major
Wall Street firms still claiming that the sub-prime
mortgage damage will be basically "contained"... Wall Street has
relied heavily on Home Owner equity in recent years (since
the dot-com crash) to
help make huge profits in the financial sectors... so of
course Wall Street is going to try to keep the majority
fooled/guessing about the true state of the Housing Sector for as long as possible...
at least until it becomes blatantly obvious to the
majority that the Housing Market is in serious trouble.
In fact, "many" Wall Street firms were
recommending US Homebuilder stocks as "buys" only just a
couple/several months ago... do these people have no
shame?... how do these people look at themselves in the
mirror?. |
