As a housing bear, I agree with the vast majority of what you have to say here, but my guiding investment mantra since projecting other “obvious” future bearish scenarios and having them foiled (or perhaps I should say “deferred to a later date”) by the Fed’s dropping rates to (well below the rate of inflation at) 1% is:
“The best laid plans of mice and men are often trumped by Greenspan’s kin.”
Again, I’m a housing bear (and a stock market bear for that matter). But one thing you have to remember about being bearish is that over 90% of the world is aligned against you. The world, in aggregate, is WAAAAY long – investors, traders, governments, etc. And when these interests feel threatened, it’s amazing to what lengths they will go to prolong the “good” times. All I’m saying is to prepare yourself to be surprised at what the powers-that-be come up with to keep this crazy market from totally tanking. There’s an awful lot of entrenched interests that have a big stake in how it all turns out. They’re not just going to roll over and get stampeded without a fight.
