jerry p

Shorting the Homebuilders as Their Stocks Surge

tommyris must have thought that pets.com was cheap at $80 because amazon stock was at $400

Could it be that the US is in less of a bubble than Europe? That doesn't mean that it isn't in a bubble. Prices in Spain are already starting to crash and the government there is talking about a bailout.

If the credit crunch is nearly over, then why are the banks trying to bail out the insurers? Why is the government talking about bailing out the banks? Who is willing to bail out the bankrupt government? Is there further demand for US T-bonds at 4% when inflation is at 4.5%?

Yes, the banks may win again, but how does that translate into this being the bottom for homebuilders?