Wake Up Call - Housing Crisis

Good morning. Equities have opened broadly lower this morning, as four separate federal agencies are investigating Beazer Homes (BZH), and concerns have arisen that the housing sector may be in store for a second leg lower, as predicted by Wall Street Greek months ago. Oil prices are in flux as well today, as tensions rise with Iran.

Asia:
Hang Seng Index -0.78%; Shanghai/Shenzhen 300 +0.49%; NIKKEI 225 -0.64%; Taiwan TAIEX -0.73%; BSE SENSEX 30 -1.83%; KRX 100 -0.86%; Ho Chi Minh -0.24%

U.K., Europe & Middle East:
DJ STOXX 50 Index -0.54%; FTSE 100 -0.31%; CAC 40 -0.62%; DAX -0.71%; Russian RTS Index +0.83%; Tel Aviv 25 +0.01%; Tadawul All Share -1.57%; DSM 20 +0.39%


Key Headlines:

• *** News broke last night that Beazer Homes (BZH) was being investigated by four government agencies regarding fraud within its lending facilitation operations, and concerns have now arisen that other home builders who also have lending affiliations and operations may face risk. This news, combined with rising tensions regarding Iran, have housing stocks and equity futures lower this morning.
• *** The U.K. and U.S. have provided satellite evidence that indicates the abducted British sailors were taken within Iraqi waters, not Iranian as argued by Iran. Iran just announced this morning that it will release the only female sailor held, but this is not likely going to be enough to ease the tension. Russian intelligence reported that the American war games going on now in the Persian Gulf, include significant land troop activity near the Iranian border, and imply a massive initiative against Iran is in the works for the near term.
• *** Oil prices rocketed to $68 last night when a rumor spread that a U.S. Navy vessel had been fired upon by Iran. As the rumor was proven false, prices declined but are exhibiting increased volatility and an upward bias this morning. It is noteworthy that equities in Saudi Arabia have declined sharply over the past three days, as the integrity of information in Saudi Arabia may not be of the highest ethics. We have to question why these shares are moving, even as oil prices increase. Wall Street Greek believes Saudi Arabian facilities represent a key strategic target for Iran in any conflict. Today, Arab officials met in Riyadh to discuss regional issues.
• *** Durable goods orders for February disappointed, falling short of expectations, and orders even declined if you exclude transportation equipment. Also, January's extremely poor measure was revised lower, to a decline of 9.3%. Durable goods orders for February rose 2.5%, versus expectations for a 3.5% increase.
• *** Mortgage applications declined in the week ended March 23rd. Applications fell 0.2%, as refinancing applications fell 0.5%.

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