Tuesday, November 18, 2008

Homebuilders DOA

http://www.cnbc.com/id/27791089


The National Association of Homebuilders Housing Market Index hit a record low of 9. This number pivots around 50. Above 50 is good and below 50 is bad. 9 is the all-time super record low. An index of buyer traffic fell to 7

IE no one is buying or looking.

The Securities Industry and Financial Markets Association figure that $400 billion of the $1.5 trillion have defaulted, so presumably they have been written down. $250 billion will reset their interest rate in 2009 and another $700 billion in 2010.

Much more loses need to be taking.

Till we clear out the bad loans, we are not going to see progress.

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