[quote=deadzone]CAR, my point on the correlation is only that the Fed can manipulate both home prices and RE prices through their interest rate policies. There is no evidence of a significant DIRECT link between stock prices and RE prices.
– Housing prices went up primarily due to credit bubble caused by Fed policies
– Stock market went up primarily due to Fed policies (ZIRP, QE).
In both cases the Fed policy is the cause and the rising asset prices is the result.[/quote]
