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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Pogeu Mahone who wrote (90161)1/5/2008 12:59:55 PM
From: GST  Read Replies (2) of 110194
 
The fall in housing prices is one of the best understood processes in our economy. The issue is not why are they falling but when will they stop falling. The same would be true if we were in a bear market for stocks -- people would buy stocks but at what price? Houses in Danville (CA) are not at levels that are attractive -- same with New York and many other places. Housing bear markets can easily last 5 to 10 years or even more. Buying early in a bear market and using lots of leverage is, well, kind of stupid.
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