GOD DAMN IT!!! When will my shorts start working for me? I mean, for heaven sakes, this has been discussed to death -- nothing but bad news on these housing stocks, and they seem to be amongst the strongest performers in the market day after day this week. My theories: 1) Housing stocks are merely proxies for the bond market (which has done well). 2) The general market as a whole GENUINELY believes that this housing 'collapse' is merely a correction and that this downturn is not a long term cycle. Do people really believe cheap mortgages will bail the housing industry out and change the market bias?? I just can not rationalize why home builders are not at 2002 price levels if the market believed that these cycles are long and will be deep (which I believe). Any ideas? I like KBH as a short because of so much California exposure.