I predict that CNBC and the rest of the drive by media will have 24/7 commentary from analyst, after fund manager, after ceo, after journalist, etc about how housing has bottomed, inflation is low, sales will be up in 07, the US economy is fundamentally strong, and we will find out in late 07 or early 08 that none of these is true.
I predict that Americans will still not get the fact that our fragile economic situation has been fueled by cheap and easy credit, the printing of large amounts of money, and huge bubbles in housing that have allowed people to use their home equity as a source of spending funds. These events have made markets look good, but only temporarily, and it will eventually revert to normal if not lower than it should be.
I predict a 40-50% reduction in RE prices in SD and 50-60% in the IE from summer 05 prices in 2010.
