Investors Throw in the Towel on Homebuilders

Investors have tolerated quarter-after-quarter of gut-wrenching losses from the homebuilders.  And yet, despite the magnitude of any ridiculously large loss posted, there was always some bullish goon on CNBC talking about how "cheap" the homebuilders were and how housing prices had bottomed and a turnaround was right around the corner.  The stocks would nearly almost always rally in the face of horrendous earnings reports.  So, I find it interesting that today, of all days, investors actually care that Pulte punted another $280 million on a variety of land-related charges and other impairments.  For some reason, despite watching revenues plummet every single quarter for the past eight quarters or so, today it really matters that Pulte's revenues dropped 37% and that the CEO refuses to even attempt to forecast.  Suddenly, all of the homebuilding stocks are down at least 20% in one day.  Could it finally be homebuilder capitulation?  Not until we get to zero.