Homebuilder stocks took a tumble after an analyst said there was little reason to believe they would have profits before 2011.

Why is the housing market still so depressed with little hope of turnaround? There's a tax credit for buying a new home as a primary residence. Mortgage rates are low. But there are still a large number of foreclosures and little reason to believe that this stream will narrow.

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The New York Times reports on a new watchdog group for the mortgage industry.

The Fair Mortgage Collaborative is a consortium of lenders, brokers and mortgage technology providers. It has received money from the Ford Foundation.

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I'm reading this new book by economist Thomas Sowell — The Housing Boom and Bust.

Dr. Sowell notes that it was government intervention and regulation that pushed lenders to reduce their standards before extending mortgage loans. These riskier loans aka subprime loans created a financial house of cards that came tumbling down, sending the world into recession.

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Here are some tips from the book Foreclosure Myths:

Novice investors fear borrowing money. They don't want to risk losing someone else's money and having that person get mad at them. As a result, they make bad decisions. They'll cash out all of the equity in their homes. They'll cash out retirement accounts. They'll use their businesses as collateral. Without need, they risk their personal assets.

Read more on Use As Much Of Your Own Money As Possible…