Tick, Tick, Tick...It's only a matter of time before a major homebuilder kicks the bucket
Housing starts are lower than they have ever been in the United States, at least since records started being kept. And rightfully so, the housing market is a mess and inventory is sky high. The last thing we need at this point is buinders assing to the supply. Low housing starts is good news for home prices. I don't expect them to stabilize soom, but builders throwing more wood on the fire would just make things worse.
Of course, these stats are very, very bad news for builders. It's only a matter of time before a major public builder goes bankrupt. The only question is which one. I kept my bet on the sector simple in CAPS and gave the old thumbs down to any one that I could find.