Finally, a Builder Gives Way

Yippee! Someone went bankrupt. That's how I feel about this WCI (WCI - commentary - Cramer's Take) collapse. At last we are seeing some companies collapse in a way that has to happen if we are ever going to get a bottom in 2009 in housing.

Throughout this era, we have seen endless declines in earnings and tremendous declines in homebuilding, but no wipeout in homebuilders.

Now at last we are getting that, although if you think about how long it took to knock off WCI -- this one was the subject of a takeover bid in the $20s just a year ago -- you know that it is going to be a very long time coming to see more knockoffs.

I keep thinking all we have seen collapse is WCI and IndyMac. Much more downside will have to occur.

I say that the homebuilders could bottom, but when you get a spike, you have to short 'em all over again until you get more collapses and more bankruptcies.

Random musings: This market is scarily thin and is signaling no bottom whatsoever. The only buyers today are those who can take a beating and stay in business.

At the time of publication, Cramer had no positions in stocks mentioned.

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