Economics and the mid-life crisis have much in common: Both dwell on foregone opportunities

C'est la vie; c'est la guerre; c'est la pomme de terre . . . . . . . . . . . . . email: jpalmer at uwo dot ca

. . . . . . . . . . .Richard Posner should be awarded the next Nobel Prize in Economics . . . . . . . . . . . .

Sunday, September 18, 2005

More Evidence that the Housing Bubble is Deflating

Richard Bernstein, a strategist at Merrill Lynch, pointed out in a note to clients that construction company executives had been vigorously selling their shares in their businesses. Heavy insider selling is a red flag.

"We think there is a strong contrary message," Mr. Bernstein said, because share sales at home builders are occurring "at a record pace across nearly the entire industry."

"We think this insider selling somewhat mimics that of the technology sector during the year surrounding the peak of the bubble," he said.
If insiders are selling, it is not a good sign for the near-term outlook of the industry.

[from this link, courtesy of Sean]
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