Is Wall Street really that dumb? Stocks tumbled today on the news "that lenders New Century Financial Corp., Accredited Home Lenders Holding Co. and General Motors Acceptance Corp.'s residential unit are facing financial problems. The Mortgage Bankers Association bolstered the belief that the struggles are widespread after it said new foreclosures surged to an all-time high in the last quarter of 2006."
I've been noticing the fragile nature of our housing economy for some time now every time I see a sign with a phone number saying something like "we buy houses." And I see those signs frequently around Knoxville. I also recently saw a commercial for Focus on Forclosure seminar which further eroded my confidence in the health of the housing market.
Perhaps it's time for me to start my own investment newsletter; where for a $200-a-month subscription fee, I can point out the obvious to my readers.