Steve, isn’t months inventory more important than the inventory number? If we had 50,000 inventory, and 55,000 sales per year, prices would go through the roof. The problem is that sales keep falling at a greater rate every month. First, we were down 10% yoy, then 20%, etc. We were down almost 40% in July 06 over July 05.
Let’s assume inventory stays flat through the end of the year, and the downward accelerating sales trend continues; prices will drop a lot. Months inventory is the important metric from what I have learned. Do you disagree?
Rich, I still don’t understand monetizing mortgages. What is “pinning” the mortgages? Yes, the NASDAQ is still too high, although it has been back to its 1998 level for a couple years now. The P/E ratios are still too high. What do you think accounted for it not fully retrenching; rising consumer demand?