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Media spin is ridiculous. Expiring tax credit drove existing sales up and new sales down? It's a bogus reason for the drop.
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New home sales drop isn't from the $8K credit ending soon. But due to ~50% of all sales to first time buyers. There simply aren't many left.
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Absent a surprise, freshly printed fiat will drive this another month or three to a catastrophic crescendo followed by a retest of the lows.
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The bear rally will continue unless unexpectedly grim news derails it. The power of trillions dropped on banks is large, but temporary.