Check out some of the charts on the homebuilding stocks. They are off because of an article in the NYTimes.
yes, unfortunately it appears that many of the ET'ers did not get that memo. I can see that there are many loading up on broken down sectors expecting 100% up room to go.
These charts are finally are coming unwound. some reckon that housing is 1/3 to 2/3 of the current economy. that could spell trouble for the bulls out there.
Care to provide a reference for your above statement that housing is 1/3 - 2/3 rd's of the current Economy? Last time I checked, consumer spending accounted for 70% of the Economy. Private Investment - - - encompassing spending by businesses on plant and equipment, inventory accumulation by business, and housing construction - - - accounts for about half of the balance. Government Spending - - - accounts for the rest.
If we had a housing slowdown - read people stop buying condos to flip - and things went back to a more rational housing market ther probably will be a hit to consumer spending over the short term and some condo and housing speculators might get burned .... but I dont see any type of big shock to the economy since these things tend to unwind slowly and thus can be managed.....