s&p 1250

nice call ericho...

Ericho, you predicted it for December 21, 2011? Nice.

222.81%

"You know me ..."

No offense, but I know you as one of the 37 posters who show up here to post about stuff completely unrelated to real estate.

The Bernanke Put in action.

"No offense, but I know you as one of the 37 posters who show up here to post about stuff completely unrelated to real estate."

So, the economy is totally unrelated to real estate? How the heck did we get into this housing crisis in the first place? Try a faltering economy coming out of the bursting of the tech bubble in 2001. If you think the economy and housing is completely unrelated, you really need to go back to junior high economics.

Question for you ericho, because I couldn't glean it from your post. Do you think the economic crisis caused the housing crisis, or the housing crisis caused the economic crisis? Curious to know your viewpoint....

Some fairly respectable analysts and managers - David Einhorn and Jeremy Grantham to name a few - seem to suggest that poor fiscal and monetary policy have caused both the "economic crisis" and the "housing crisis". These accomplished billionaire investors also appear to believe that the same poor fiscal and monetary policy that caused these recent crises will certainly cause another one, maybe sooner than later and perhaps more severe even than the last.

After all the definition of insanity is to keep doing what you've always done but expect different results. Of course that is only according to Albert Einstein. What the hell did he know?

Interesting that those accomplished billionaire investors don't think that any of the problem resulted from banks and securities markets that invested in loans that could never be paid back, massively overpriced and unproductive residential housing, dot.com proposals that made no sense, reorganizing companies to minimize employment and wages while reneging on promises made to earlier generations, and buy think tanks, news media and ultimately politicians to convince the populace and its government that it would be good ideas to gut the regulations that made capitalism work, allow the real minimum wage to drop by almost 2/3rds, destroy the unions and other mechanisms for ensuring that ordinary people get the benefit of their productivity, turn the taxation system into a forced redistribution to the wealthy, allow the financial industry to triple its toll on the economy while increasing volatility and frequency of financial crises, and then use social security surpluses to fund tax cuts for the rich.

But I suppose that is because they believe that markets are always and everywhere evil, so the only variable is the quality of the government polices that restrain them -- or are corrupted by them.

"Question for you ericho, because I couldn't glean it from your post. Do you think the economic crisis caused the housing crisis, or the housing crisis caused the economic crisis? Curious to know your viewpoint.... "

FED monetary policies is the main driver of all of this.

"....Interesting that those accomplished billionaire investors don't think that any of the problem resulted from banks and securities markets that invested in loans that could never be paid back..."

Everyone was searching for yield with rates averaging 3-5% from 2002-2007. It was simply a case of when to pull out when the music stops.

"So, the economy is totally unrelated to real estate? How the heck did we get into this housing crisis in the first place? Try a faltering economy coming out of the bursting of the tech bubble in 2001. If you think the economy and housing is completely unrelated, you really need to go back to junior high economics"

Wait, did a bull just finally admit the stock market might have something to do with Manhattan prices. Oh, right, wait, only when it goes UP. ;-)

"Wait, did a bull just finally admit the stock market might have something to do with Manhattan prices. Oh, right, wait, only when it goes UP. ;-)"

You're kidding right?
I'm one of the biggest believers that the economy, stock market, bond market & RE are all correlated.

Ericho, Im curious...what is your theory on junk bond yields?