leh

Tuesday Outlook: Commodities, Emerging Markets, Technical Indicators

P.S. I bought puts on a home builder yesterday morning as it rallied to previous highs. Many smaller builders are facing bankruptcy, and the WSJ had a powerful front page piece last week profiling one of them in the Cleveland area. Very interesting article as it revealed that the sub-prime easy $$$ mortgages were absolutely behind the phantom housing boom in that area. As soon as the easy money began to dry up as lenders started tightening standards, the market fell off a cliff. What would Kudlow say about how the free markets functioned here in encouraging people to spend money they really couldn't afford?