Everyone who has been holding their breath, waiting for the real estate crisis to do whatever it is that it is going to do, may have to hold on for a bit longer. A piece in the Sunday New York Times by one of the best reporters in the country, Gretchen Morgenson, apparently caused a hiccup in the stock market on Monday. The article detailed a potential collapse in the high-risk sector of the mortgage business, and the ramifications that would have on the rest of the economy. Meanwhile, the CEO of home builder D.R. Horton, one of the industry leaders, told stock analysts "that 2007 is going to suck, all 12 months of the calendar year."
Previous real estate discussions have pooh-poohed the idea of Dallas suffering the same fate as the East and West coasts, where prices have fallen drastically. But when the guy who runs a $15 billion company is that blunt, I start to worry.
