IIIrvine_IHB
New member
This thread started out with the question, "Could this be the lull before the storm?"
We are just now seeing the beginning of the storm as the subprime industry is playing out with NEW, LEND (and more to come), and the next remaining to be seen are the homebuilders, namely DHI, LEN, PHM. Watch for foreign capital inflows. With the shake-out from the subprime woes, foreigners will diversify in other countries' economies and foreign capital inflows to the U.S. will dry up as evidenced by the December net inflows into long term U.S. securities of just $25.6 billion in December (the U.S. needs $70 billion a month to finance its current account deficit):<a href="http://www.businessweek.com/magazine/content/07_10/b4024037.htm?chan=top%20news_top%20news%20index_businessweek%20exclusives"></a>
http://www.businessweek.com/magazine/content/07_10/b4024037.htm
We may be in the eye of the perfect storm...
We are just now seeing the beginning of the storm as the subprime industry is playing out with NEW, LEND (and more to come), and the next remaining to be seen are the homebuilders, namely DHI, LEN, PHM. Watch for foreign capital inflows. With the shake-out from the subprime woes, foreigners will diversify in other countries' economies and foreign capital inflows to the U.S. will dry up as evidenced by the December net inflows into long term U.S. securities of just $25.6 billion in December (the U.S. needs $70 billion a month to finance its current account deficit):<a href="http://www.businessweek.com/magazine/content/07_10/b4024037.htm?chan=top%20news_top%20news%20index_businessweek%20exclusives"></a>
http://www.businessweek.com/magazine/content/07_10/b4024037.htm
We may be in the eye of the perfect storm...