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March 12, 2008

Wachovia says plenty bad to come in housing market

Besides $110/bbl oil, this was the other reason the Dow slumped today.

Wachovia expects plenty of fallout to still hit the housing market.
Speaking to analysts on a Deutsche Bank Securities Inc. conference call, Don Truslow said, "It feels like we have a ways to go."

Using a baseball analogy, Truslow said he didn't know if the downturn was in the third, fourth or fifth inning. He added "we're still before the seventh inning stretch."

And if the economy gets worse, "we could find ourselves right now in very early innings of the credit cycle," Truslow said.

Again, can you say “stagflation”? $110/bbl oil and a still-sagging housing market can.

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