The Merrill Lynch chief economist for North America, David Rosenberg, took exception. He pointed us to the pre-election datapoint indicating that mortgage applications for new purchases, as well as re-financings, were hot as a pistol, saying he wasn't impressed. I too took all this data with a grain of salt, as you know. Empty bullets.

I like David Rosenberg because he shoots from the hip. Real bullets.

First, to those who continue to spout the pre-election "soft landing" mantra, Rosenberg bluntly says (I paraphrase): "wait for the thud". Download ML Nov 8 statement re Greenspan.

He then also points out the ongoing inventory crisis in this second report. Download ML Nov 8 report on housing inventory.

The President reminded us yesterday about this election "wasn't my first rodeo you know". Well, this isn't my first "Gunfight at the OK Coral" either, but this time around, I've got Marshall David Rosenberg on my side and his bullets are blowing away the pretenders of the other gang, Greenspan included.

The issue of the glut of unoccupied new homes will take a couple years to remove, and that will have a deleterious impact on the U.S. economy for some time.