The subprime story hit the MSM hard last Thursday [1] when The Economist got into the act. This likely marked the moment when mainstream sources were forced to take the macro aspects of the housing bubble seriously.
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The subprime story hit the MSM hard last Thursday [1] when The Economist got into the act. This likely marked the moment when mainstream sources were forced to take the macro aspects of the housing bubble seriously.
One of my guilty pleasures is the Gossip Boards at Yahoo Finance. I rarely get great info on stocks there, but sometimes the comments are great. As a bear, I particularly enjoyed this comment from "Numchuk Skills" on the Countrywide Financial (CFC) board in reference to "longs."
My impression of a long:Inflation - bullish! Gold goes up. Wages go up: more money to buy big-screen TVs.
Deflation - bullish! Big-screen TVs are now cheaper.
Surging economy - bullish! General euphoria leads to more big-screen TV purchases.
Tanking economy - bullish! Fed lowers rates. Everyone gets a deck of credit cards to by big-screen TVs.
Hurricane - bullish! Think of all the new big-screen TVs that will be needed.
Borrow. Go in debt. Borrow more to pay off debt. Borrow to buyback stock. Live today, pay tomorrow. Don’t reinvest earnings in technology, just buyback useless pieces of paper. Bullish!
When I close my eyes, I see rainbows and gumdrops…
Darn. I was all set to give up my days of "bubble sitting" when I saw this ad from Beazer Homes: [more great junk mail from one of our favorite agents]
