Housing isn't just bad, it's really bad

As Zero Hedge has already discussed, last month's housing numbers are hardly something to cheer about. Nouriel & Co. are cautiously optimistic - not outright calling a bottom but definitely seeing a glimmer of hope.

The problem is the story that the numbers tell; the current purchase numbers are strongly driven by foreclosure sales (45%) and with the significant price drop in average home price(15% YoY), it's clear that it's a case of buyers trying to call the bottom and catch the proverbial falling knife. Much like the equity guys who got excited by every mini rally in the DJIA over the past year, this is far from even being close to showing signs of life.