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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (51610)	4/10/2006 6:36:09 PM
From: Perspective	Read Replies (2) \| Respond to of 306849

It's highly likely at this point that housing is now nine months post-peak. However, the big question for me remains: how much longer until it shows up in the general stock market measures? To put everything in perspective, I believe that the real estate bubble is just the most recent manifestation of the credit bubble that went ballistic back in 1995. The 2000 stock market bubble was one of the results, as were the various emerging markets bubbles. I think most of us understood the bubble was forming back in the late 1990s, but few of us thought that it could survive the Nasdaq stock market crunch. Of course, Greenspan proved us wrong. You CAN prop up the credit bubble in spite of collapsing stock prices by finding a bigger inflatable asset base: real estate. So now, with real estate sales volumes having peaked, and prices starting to slide, I would expect that the credit bubble is done. However, this is not being reflected in the general economy or stock prices. How long until this happens? Is there yet another bubble that is growing unabated? Is there another asset class being levered up as we speak to offset sliding real estate liquidity? All I want is to get a reasonable return on my invested time. I've been trying to be positioned properly for a credit bubble bursting since 1999 - and I want my hard work to pay off. BC