New Home Sales Continue Deep Slide

Market Watch has the details on the new home sales report and it doesn't look pretty (lots more at Calculated Risk).  While sales are off 30% year-over-year we still have 10 months worth of new inventory, the highest since 1981.  On the bright side we're slowly cutting in to excess inventory which is an important step in pulling out of this ridiculous tail spin. Interesting note on the whole recovery debate.  The "bottom calling" has picked up a lot of momentum lately, and I think it is still largely unfounded.  I was talking to a couple of hedge fund folks yesterday and they referenced a new Goldman report which in essence estimates that we've seen only a fraction of the total losses (across all credit types from mortgages to synthetic CDOs to credit car