Sr. Pessimist

The True Story on Housing

I agree with the Forbes journalist, so long as I include clarifying details (in braces []):

"You can see right through the housing crash story by looking at the prices of housing stocks. The market knows what the economic worrywarts do not, which is that the housing sector is already making a comeback [to their parents' houses]. In the last six months housing stocks are up 24% [among a given selection], well ahead of the overall market [but don't count the last one month because that doesn't count]. If housing were destined to fall apart in 2007 these stocks wouldn't be so strong now [unless stock traders were sub-God in their future-predicting]."

"Did you know that housing sales are up in the last few months [in England], not down [like in America], and that inventories are lower than six months ago [comparing Europe now to American then]? We're accelerating [downward], not landing [and correcting for a positive direction in this market]. This is true not just in housing but also pretty much across the board [, because the entire stock market is ready to shed around 1/2 of its price very abruptly]."