[threadbear]

Mike Whitney has written another piece of epic proportions and implications on the housing bubble collapse, for CounterPunch. There are several articles mentioned in this piece that can provide further education, to those inclined to this sort of thing.

Whitney--From Counterpunch--April 24 edition:

"Geither's right. The markets now operate as unregulated banks generating mountains of credit through massively leveraged debt instruments---a monster credit bubble larger than anything in the history of capitalism.

So, where is all this headed?

No one really knows. But when the housing bubble crashes into Wall Street's credit bubble,; we can expect the "big bang". That may explain why America's wealthiest investors are running for cover before the whole thing blows. (A number of investors have already cashed out and put there holdings into foreign funds and currencies)

http://www.counterpunch.org/whitney04242007.html

[PrairieMule]

TB-

I'm not the type who follows counterpunch, but this is a very good article.

Seems like putting your hand on a hot stove has proven to be equally painful with a "left" or "right" hand.

[Plantagenet]

$this->bbcode_second_pass_quote('threadbear', ' ')America's wealthiest investors are running for cover before the whole thing blows.

[threadbear]

$this->bbcode_second_pass_quote('Plantagenet', '')$this->bbcode_second_pass_quote('threadbear', ' ')America's wealthiest investors are running for cover before the whole thing blows.

[Plantagenet]

"Investors want to keep putting money into the markets," said Charles Rotblut, senior market analyst at Zacks Investment Research. "We're not getting the sense that there's much fear; we just ripped through" the 13000 barrier.

Many factors have led to the bull run, including surging global growth; massive liquidity creating a steady onslaught of private-equity takeouts and mergers; and the falling dollar. The weak dollar has helped particularly in recent days, especially for multinational companies such as those populating the Dow. "If we see a bounce in the dollar, I think it could set up a market pullback," said Marc Pado, U.S. market strategist at Cantor Fitzgerald.

The S&P 500 and the Nasdaq, plus the Dow transports and utilities indexes, were all at records or multiyear highs as well. "The broad-based confirmation [of the Dow's record] was important" Mr. Pado said.

-------

from the wall street journal

[Plantagenet]

The housing bubble is real enough...especially in overbought areas like California, Florida, DC, Boston, etc.

But much of the US never had an enormous housing bubble to match the one in California.

Personally, I think its a good thing if housing prices come down a bit. Lower housing prices will enable more young people and working class people to buy homes.

[I_Like_Plants]

I believe the big bubble in the 1920s was in Florida, there are houses there that went for a million or more in 1920s dollars, and are still not worth that much in 2000's dollars.

I was not here in the SF area for the tech bust, but friends tell me it was very, very, fast. The housing bust will take time simply because it takes more time to get out of a house than sell a stock. I think it will be of at least the same magnitude though, if not worse.

[NEOPO]

I am laughing - am I bad?
Highway To Hell

[strider3700]

$this->bbcode_second_pass_quote('NEOPO', 'I') am laughing - am I bad?

[threadbear]

$this->bbcode_second_pass_quote('Plantagenet', 'T')he housing bubble is real enough...especially in overbought areas like California, Florida, DC, Boston, etc.

But much of the US never had an enormous housing bubble to match the one in California.

Personally, I think its a good thing if housing prices come down a bit. Lower housing prices will enable more young people and working class people to buy homes.

[Newsseeker]

$this->bbcode_second_pass_quote('Plantagenet', '')$this->bbcode_second_pass_quote('threadbear', ' ')America's wealthiest investors are running for cover before the whole thing blows.

[Chaparral]

The last few COT reports have showed the commercial hedgers building up an impressive long position on the index futures. They had a 5 yr record net short position prior to February's 800 point hiccup but while joe-blow was selling in a panic, the big guys were buying like there was no tomorrow. The little schmuck got faked out and the sharks ate his lunch. The expectation is that they big guys will entice the little schmucks to start pouring their money back in and they'll gladly fake them out again, perhaps this summer of maybe in the fall.