by Dave Kranzler, Investment Research Dynamics:
The economy is starting to really fall out of bed. I know who someone who has been selling steel buildings for the last 12 months who told me that his company is 20% below its projected business plan this month. Both the NAR and the Census Bureau released their existing/new home sales reports for December. The NAR claims a small bounce in sales occurred during December. The Government would have us believe in a large bounce in new home sales. BOTH reports are heavily contradicted by supporting data reports (like mortgage purchase applications.
I have not had time to thoroughly sift through those two reports or the most recent homebuilder earnings reports (DR Horton and Pulte). I’ll have a lot more to say on those matters sometime this weekend and IRD reiterates its “look out below” forecast.
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