Supply Up, New Homes Sales Down

Hey! Its the most basic law of economics: Supply & Demand:

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First, lets look at Supply:

New 1-Family Houses For Sale: Months Supply

New_homes_supply

 

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Uh-oh:  More supply coming on line:

New Houses (for sale) Under Construction

New_construction_sales

 

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The rounded top of units sold:

New 1-Family Houses Sold: 3-month MovingAverage

New_family_homes_3_mo

 

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Source:
Sales of New Homes Cooling Down
Asha Bangalore
Northern Trust, February 27, 2006
http://tinyurl.com/l2yqu

Category: Real Estate

The Backward Business of Short Selling

If you haven’t already, I strongly admonish you to go read Jesse Eisinger’s column today:

It’s a Tough Job, So Why Do They Do It?  The Backward Business of Short Selling

Here’s the money quote:

Short_interest
"The shorting life is nasty and brutish. It’s a wonder anyone does
it at all.

Shorts make a bet that a stock will sink, and nobody else wants
that: Not company executives, employees, investment banks nor most investors.
That’s why most manipulation is on the other side; fewer people object when
share prices are being pumped up. For most on Wall Street, the debate is whether
shorts are anti-American or merely un-American.

Yet in all the paranoia about evil short-sellers badmouthing
companies, what is lost is how agonizingly difficult their business is. They
borrow stock and sell it, hoping to replace the borrowed shares with cheaper
ones bought later so they can pocket the price difference as profit. It’s a
chronologically backward version of the typical long trade: sell high and then
buy low."

Go forth and read . . .

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Source:
It’s a Tough Job, So Why Do They Do It?
The Backward Business of Short
Selling

Jesse Eisinger
WSJ, March 1, 2006; Page C1
http://online.wsj.com/article/SB114118313441386192.html

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UPDATE March 2, 2006 10:32am: 

See below for more text

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