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Calling the Bottom
agorafinancial.com — Forget baseball, the new American pastime is a little game known as, “Calling the Bottom.” Ever since the credit crisis splashed onto the front pages of the nation’s newspapers, swarms of overly eager investors have tried to call the bottom of the crisis, while also trying to call the bottom of the housing collapse and the finance sector selloff.
StingingNettle- 35 diggs
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- eastwood24, on 07/02/2008, -0/+7I'll know we reached the bottom when im eating beans from a tin-can in a van down by the river. But to be speculative on housing prices, the bottom will be reached when actual home prices are in line with inflation adjusted incomes. considering the recent pace of the M3 (total money supply, and the best gauge of actual inflation) being currently 16% annual and incomes stagnated, it could be a long hard ride to the bottom. Either way home prices will have to continue to fall until average joe can afford to buy.
This may help put the extent of the housing bubble into perspective:
http://www.investingintelligently.com/wp-content/u ... - rpi22, on 07/02/2008, -0/+7It's in their best interest to convince us that the worst is over. It's the same ***** they tried to pull as the US collapsed into the first great depression. What we've seen thus far are merely the tremors that precede a major earthquake, or the huge waves that crash ashore ahead of the approaching hurricane. The credit crisis is only just beginning.
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