- A dumping of homes on the market in the spring
- A quantum increase in the months of unsold housing inventory
- A dramatic drop in the average home selling price.
2. Robert E. Rubin returns to his brokerage roots and becomes the CEO and chairman of Salomon Brothers/Smith Barney after Citigroup ( C) decides to break up into three separate companies: a domestic money-center bank (Citibank), an investment banking/retail brokerage (Salomon Brothers/Smith Barney) and an international consumer finance company (Citiglobal). 3. Based on misleading government statistics, the housing market appears to stabilize in the first quarter of 2007. For a few months, those forecasting a bottom in residential real estate appear vindicated. Evidence of cracks in subprime credits are ignored, with housing-related equities soaring to new 52-week highs by March 1. 4. However, continued heavy cancellations of home contracts -- which are included in the government releases on homes sold and lead to
an erroneous inventory of unsold units for sale -- lead to: