Housing Foolishness

The stock market is up big (so far) today on news that housing sales were unexpectedly strong.  However, if one were to analyze the data they would determine that the main reason for the strength is that housing is for the most part on fire sale.  Most of the gains were fueled by first-time buyers snapping up foreclosed properties in combination with the tax credit being offered, which will expire by the end of the year.  Still, the market chooses to whistle past the grave yard and rejoice at the news.  This entire rally is a house of cards that is due to collapse very soon.  Caveat Emptor!!!

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