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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (27975)	3/7/2005 1:09:01 PM
From: stockman_scott	Respond to of 110194

08:59 WSJ article on investment bubbles The Wall Street Journal's "Heard on the Street" column discusses investment bubbles. Doug Kass of the hedge fund Seabreeze Partners believes that much of the mania that was in Nasdaq stocks in the late 1990s has shifted into real estate. Along with big price jumps in many housing markets, 23% of U.S. home sales last year stemmed from investment purchases, according to the National Association of Realtors. "We have day trading in homes instead of day trading in stocks... It will end the same way, and it will be the same guys delivering the product," says Kass. Yale University economist Robert Shiller, who like Kass had a negative view on the U.S. stock market in 2000, also says the real-estate market is where the speculation is. In addition, James Grant, editor of the newsletter Grant's Interest Rate Observer, believes the Fed's moves helped drive greater speculation in the credit markets as well.