Dominoes Falling

Bill Miller On Timing Buys In Housing Stocks

Anyone who has had any real estate knowledge should have known that this downturn in housing at the top of a bubble was not your typical RE downturn and that there would be more legs down. The RE market has still not discounted this downturn entirely so there is more to come. For anyone suggesting that now is the time to buy is either ignorant or trying to raise the market so to sell into it. Bill has lost all creditablity.

Predicting Recessions: Identifying Reliable Sources

Obviously the bulls have reviewed the bears arguments and disagree but how do you explain the 50% decline in the housing stocks all the while the bulls are denying the dominoes lining up as predicted by the bears. How do you stop the dominoes of reverse wealth effect, mortgage resets, the solvency credit crunch and tighter credit with higer rates, the elimination of MEW (mortg. equity withdrawal), fewer leverage buy-outs and corp. buy backs, less foreign buying of any mortgage products, the falling dollar, less yen carry-trade, etc.etc. etc.

David Fry's Market Outlook for Wednesday

This is a letter I sent to the LA Times today. I say tax gasoline to $5/gal and Detroit might get competitive again. Also don't drill offshore, conserve and husband our oil and use up other countries oil first.

Toyota beats GM in world sales for the first time because of "missteps by U.S. - based automakers." Missteps, are you kidding! Management disasters are more like it. Roger Smith (CEO '81-'90, infamous in M. Moore's movie Roger & Me) reorganizes GM and destroys individual brands. More recent CEO's kept building huge SUV's (only area of profits) expanding fleet right off a cliff and B.S.ing everyone about hydrogen and dumping electric. WOW ...just a few missteps. I would laugh but I can't stop crying.