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Tuesday, July 26

July 26th LATE

View: Not much will happen in broad U.S. economy before housing picks up. That is why everybody is so anxious about the housing starts, building permits, new home sales, blah blah. Every tick pushes people to argue that house prices have finally bottomed/still falling/stabilized/politicians’ indecision has made them more volatile. My gut feeling for a major turn in housing is 3-5 years. Just because at that time, everybody in the market will know that housing sector is a dead horse and parents are teaching their kids never to get large mortgages.

$1B outside money, almost $24b of Soros family money.


Nice looking charts from 1995 to now showing how large margin debt and bull peaks go hand-in-hand.

“ISDA is rapidly deteriorating to rating agency status when it comes to credibility”


Long and detailed look at the earnings cycle and where we are now. Bearish.
Converging On The Horizon – Crestmont Research via The Big Picture

Nice charts, quick read

Low yields push people to dubious investments.

DIVERSION
Recommended, some very pretty and effective tricks

Practicioners vs. academics connection has been lost, but will it be found?