Some housing bubble reports from Wall Street and Washington. "The economic outlook remains so uncertain that the Federal Reserve is very likely to hold rates steady again at the next policy meeting in September, according to participants at the Fed's annual retreat. Economists said they were struck by the lack of certainty in their private conversations with central bankers."

"'Anyone who says they are dead certain is either lying to you or to themselves,' said economist Lewis Alexander."

"There is widespread agreement that the Fed finds itself in something of a box. The outlook for the housing market is a key part of the puzzle. The weaker market is expected to reduce the ability of consumers to spend, but the magnitude is uncertain. 'The very rapid deterioration in housing is the most obvious question mark,' Alexander said."

The Gallop Poll. "These most recent data simply confirm the widely held perception that housing activity has slowed significantly in 2006. The August UBS/Gallup Index of Investor Optimism poll shows investors are worried that the real estate markets are continuing to deteriorate. Fifty-six percent of investors rate current nationwide real estate market conditions as 'only fair' (44%) or 'poor' (12%). This represents a significant worsening of attitudes compared with June and July, when 46% of investors held this view."

"About 70 percent of investors believe that conditions in the real estate market are getting worse, up from 63 percent in June, the survey also found. Investor sentiment toward investing in real estate assets nationwide has also fallen. 'The drop in confidence in the real estate market reflects the economic data for that sector and suggests that investors are feeling the pinch in their local markets,' said Anne Briglia, strategist for UBS."

From Danielle DiMartino. "Investors are being bombarded with arguments for and against the homebuilding sector. 'Homebuilders have been living off high margins, high volumes and solid pricing,' said Mark Kiesel, a portfolio manager at bond behemoth Pimco said. 'But that's all changing due to declining affordability, higher mortgage rates and rising inventories.'"

"Though prices are still up by a hair, 0.3 percent, buyers know it's only a matter of months before they start to fall. Even for those willing to buy into this environment, the lenders still have to be willing participants. 'Lending to consumers for housing will become more restrictive as mortgage lenders pull back,' Mr. Kiesel added."

"The implications for margins, and, more important, cash flow, are plain. 'Right now margins are falling off a cliff, because builders have to offer such huge incentives,' Mr. Kiesel said. 'That's where you get to the cash flow drain.'"

"Completed homes sitting in current inventory don't pose near as big a threat to builders as those in midconstruction. 'That's why they're doing everything they can to liquidate their existing inventories to raise cash,' Mr. Kiesel said."

The Daily Reporter Herald from Colorado. "Home builders are feeling the pinch from the slowdown in sales across Northern Colorado. Sales for new homes have plummeted 20 percent, said broker Steve Kawulok."

"This puts builders with new homes on the market in a crunch. Earlier this month, one builder told the Berthoud Board of Trustees that he is losing money every day on his unsold homes at Gateway Park off Colorado 56 and County Road 17. 'Sitting on all seven homes for two years has nearly bankrupted me,' Eddie Mirick said."

The Denver Post. "Businesses that serve the homebuilding industry are starting to feel the ripple effect of a slumping housing market. Architect Layne Bennett in Westminster has seen his revenue drop about 25 percent in the past year. The company's three largest clients are production builders Ryland Homes, Continental Homes and Advocate Homes."

"'We've just gradually gotten less and less work,' Bennett said. 'They're not selling their houses, so they're not building more.' The slowdown has forced Bennett to cut his advertising budget from about $100,000 last year to $40,000 this year. 'I just don't have the money to do it,' he said."

"Suppliers to the homebuilders also are seeing a dip in business. Steve Walters of Bel Shower Door Corp. said, 'More than one major builder has brought in its subcontractors and asked the question of what we can all do to lower expenses,' he said. 'With the market slowing, the prices of homes have to come down. They have to lower expenses because their margins aren't huge.'"

"Jim McFarland, a foreman for STK Framing at a KB Home development at Stapleton, said he has noticed there isn't as much work available to the trades as there was a year ago. 'It was hard to get help a year ago,' he said. 'Now, there are more people running around looking for work.'"