jepsd, is there a way to find out how many people used equity from their homes to invest in the stock market? I’ve read this before: MEW was used for consumption, but also for buying second homes and stocks.
I have a question for the stock market bulls: do you believe we are in a housing bubble?
Everybody who believes in a housing bubble also is waiting for the stock market to go down: International Monetary Fund, Barry Ritholtz, Nouriel Roubini, Calculated Risk, Tim Iacono, iTulip (Eric Jantzen), Daily Reckoning, Christian Science Monitor, Yamamoto Forecast, Bill Fleckenstein, I could go on an on. All these people, as well as many media stories, link the bust of the US housing bubble with a busting stock market and some of these guys go so far to forecast a recession.
So it seems that if you are bullish on stocks, you don’t believe this is a housing bubble, or you think housing won’t drop significantly, or you don’t realize that housing is linked to the economy.
Could you please explain why you think the stock market will go up, and your view on the housing market?