Collapse in new home sales manifests deflation and economic depression in 2007-2012 – Dow can fall below 1700
Sam Adelton
Mar. 26, 2007

The sales of new single-family homes fell by 3.9 percent last month to a seasonally adjusted annual rate of 848,000, the slowest sales pace in nearly seven years. It is a sharp drop that has shaken the Wall Street badly.

Finally the Fed and the Wall Street’s billion Dollar Gurus are coming to understand what we have been saying in India Daily for long time. The world economies are headed for a deflation driven depression.

The mortgage defaults, the foreclosures and lack of borrowing power are manifestation of deflation. The banks and financial institutions are ready to collapse. The stock market can go down below 1700 in Dow by 2012.

Interestingly, Fed will not lower rates because it is watching ‘Inflation’ in a deep deflation driven economy where people are borrowing to pay the mortgage interests.

Collapse in new home sales manifests deflation and economic depression in 2007-2012 – Dow can fall below 1700
Sam Adelton
Finally the Fed and the Wall Street’s billion Dollar Gurus are coming to understand what we have been saying in India Daily for long time. The world economies are headed for a deflation driven depression.
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UK home price increase hits record – US market can follow the trend setter in Europe
Karen Gonzales
The US housing market can potentially follow the UK market. The lumber futures contracts held by the commercials point to a building pressure on the demand for lumber.
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The data this week will point to a recovering economy – are you long dollar yet?
Paula Zuba
Are you long the dollar index? The smart money is planning to go long on dollar early morning on Tuesday with collapse in consumer confidence.
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Consumer confidence crashing as home prices continue to fall and people start losing their underemployed jobs - Confidence-Conf. Board data will confirm
Peter Oberois
As people struggle to come up with cash to debt service the second mortgage and home equity line of credit, as home prices continue to decline 2% a month, as unsold homes still keep rising, the consumer confidence is falling.
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The lower rates creating buying spree in residential real estate – the deflation driven economy ready to suck in every one before crashing down to the earth
Sam Adelton
After the short but fierce bear rally is over, the real estate market will start collapsing again. Right now people will think - like before real estate will recover back.
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GM, Ford and Chrysler set to capture the alternative fuel cars - can the three really survive bankruptcy - if not what happens to stock market?
Peter Oberois
The three will go belly up and will also take the economy with them. The collapse of GM, Ford and Chrysler will signal deflation and depression in the economy.
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World stock market resume downward trend – April crash of 2007 eminent
Marla Guthrie
Lower corporate profits, increasing interest rates in emerging nations, real estate collapse and mortgage meltdown in America and Europe is ready engulf the stock markets across the world.
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