There is NEVER Just One Cockroach – Dennis Gartman
March 13th, 2007 by Stephen RomanDennis Gartman wrote this again today about the delisting and impending bankruptcy of New Century. The market is spooked obviously – the real estate market is going to get a lot worse. Gartman expands on his cockroach theory:
We know only this: New Century will not stand alone in the current wreckage. More shall follow NEW into fiscal oblivion. Further, this will not be limited to sub-prime mortgage financing, but will bubble upward through the entire mortgage market, as better and better quality loans become more and more suspect. The banks are telling us now, and will tell us in the future, that they will continue to lend to the industry, but mark our words, it is but a matter of time until their lending is curtailed, that loans are called and that this all collapses into wreckage and tears.
The rest of the sector isn’t looking too hot right now either:
Posted: March 13th, 2007 under Americas, Equities, General, housing bubble.
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