Denial Is Not A River

From Fleck's latest, This mess will only get worse....

"the gaping hole in the side of the mortgage market appears to be impacting the price of housing stocks -- just as it will surely impact home sales in the coming months, causing that vast river of denial running through Wall Street to dry up.

And, as it does, people will be able to see that there is a gaping hole in the economy, because there's nothing to fill the gap left by an implosion in the housing market.

But for now, bulls cling to the illusion of safety in the tech sector -- which is why those stocks held up pretty well last week, even as everything related to housing and finance was hit.

It's almost comical the way they try to hide in semiconductor-equipment stocks, as though they are T-bills with upside, unconnected to the economy.

That's where we are today. The housing market is on the verge of tanking, ditto the economy, but the dead-fish community and bulls at large -- of which there are very many -- are still trying to proclaim that the stock market is at bottom.

Just as they did with housing stocks -- until ignoring the obvious stopped working
."

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