Home builders are reporting across the country that new orders are down and that buyers have become suddenly cautious. In one bubble territory after another, homes are piling up as speculators cut their losses and run.
(PRWEB) March 1, 2006 -- This week we received notification that the great, mega, massive Greenspan housing bubble has finally arrived at its graveyard. Home builders are reporting across the country that new orders are down and that buyers have become suddenly cautious. But, the really bad news is inventories. In one bubble territory after another, homes are piling up as speculators cut their losses and run. It's fitting that the end of the housing bubble is aligned symmetrically to Greenspan's retirement from his position as chairman of the Federal Reserve. Greenspan's eighteen year tenure as chairman was marked by the astonishing increase of debt in American society and an addiction to speculative gains in asset prices, catalyzed by declining interest rates. Want to read more of this analysis?
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Paul Mampilly CFA is the editor of Capuchinomics and a leader in the use of Behavioral Finance decision making with respect to stock, bond and commodity markets. His commentaries on financial Markets have been published by The Daily Reckoning, Welling@Weeden, 24HPM.com, Google News, GSE Reports, Peak Oil, Unknown News, Gold Investments, and Safe Haven. Capuchinomics is a division of The Capuchin Group LLC.
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