Tuesday, August 24, 2010

Zandar's Thought Of The Day

Me, June 2009:
Despite all the overwhelming evidence to the contrary, CNBC's Jim Cramer has officially called a bottom to the housing market.

Man, I love these old comedy reels, don't you?
 
But here's the reality of the situation:
All these will combine for a perfect storm in the second half of the year and into 2010. Housing prices will continue to fall, not stabilize. Buying into a recovery right now, especially a strong recovery, is a lethal mistake. More havoc will continue to spread across the country...and if housing starts are truly on the way back up, the supply of unsold homes on the market will only continue to increase.

That means housing prices have to fall. I said back in May that housing starts had to continue to fall under May's record lows, not rebound from them.

Cramer's not only wrong, but he should be fired. I'll keep revisiting this one to see how badly Cramer's call has failed.

Part of me is having a really good chuckle right now.  Then I remember what me being right actually means, and I'm not so happy anymore.

Also, Cramer's still an idiot.

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