1) Go and look at those charts and see the flattening of home prices in the mid 90’s that went on for around a year and a half. The bottom is recognizable and doesn’t happen in a month and then head back to the moon again….
2) A bottom can be predicated when certain fundamentals come into line here. That is if the fundamentals don’t change in regards to lending standards again (sleazy credit)
3) I don’t see the correlation of these 3 tier’s aligning to signal a bottom. They have nothing to do with a potential bottom.
Do you know how many La Jollians are taking loans out against their 401K’s right now to pay their alligators? ALOT.
