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Another Analyst Explains Why Housing Is In Trouble

|Includes:BZH, D. R. Horton Inc. (DHI), KBH, LEN, RYL, TOL

This guy explains why the decline in foreclosures and distressed sales is a big negative for the housing market. While counter-intuitive, his explanation is clear - crystal clear:

In summary, the halting of foreclosures and short sales due to can-kicking - and to a larger extent exotic mortgage mods - has caused serious structural damage to the demand equation of the macro housing market, which amazingly hasn't not dawned on many yet.

Here's the full article link: Headwind For Housing

My first homebuilder short-sell is performing well so far - it has at least $10 of easy downside in it from here, with patience. This stock traded below $5 in the 1990′s and I expect it go below $5 eventually once again: Homebuilder Stock Short-Sell Idea

As the overall stock market begins to price in reality and sell-off quickly, it will exert particularly heavy downside force on the homebuilder stocks.

Disclosure: The author is short DHI, KBH, RYL.