Thursday, February 21, 2008
House building stocks get demolished
It’s refreshing when you see an analyst really laying into something. And that’s exactly what Dresdner Kleinwort’s Alastair Stewart did to the housebuilders' stocks yesterday. Forget about a soft landing for property. Housing demand has been entirely a function of the amount of money available to borrow to pump into property. That availability isn’t diminishing slowly – it’s been pole-axed by the belated realization – stemming initially from the US - that borrowed money has to be paid back sometime. And that means demand will collapse.