Lehman Living in Hope and Client's Dying in Despair?
Reuters) - Lehman Brothers said sales trends in the U.S. homebuilding industry will improve within the next two quarters and initiated the sector with a "positive" rating.
Stocks in the sector will remain volatile as new home sales have not bottomed and trends will improve by the second half of 2008, Lehman Brothers said.
Maybe it is the rapidly rising defalut notices that is going to lead to even higher foreclosures in the second half of the year.
How about the fact that thousands of layoff notices are being announced everyday. This morning Nortel announced 2100 job cuts and yesterday New Jersey proposed at least 3000 job cuts and last week Goldman announced 1500.
Maybe it is the fact that fuel is hitting record highs cutting into consumers ability to make house payments.
Maybe it is the fact that the dollar is crashing only adding pressure to higher long term term interest rates as few want to hold our currency regardless what the Fed does.
So let's think about this: more distressed inventory, worsening employment outlook, rapidly increasing inflationary pressures, and higher interest rates............who is Lehman trying to sucker?