In many ways volatility in the stock market validates the housing bubble argument. People chime in on down days due to it validating their position. Actually most of the down days this year have been associated with housing and the mortgage crisis. I think there was a show on CNBC, something like Fast Money, where they characterize the bull/bear debate on the economy using Godzilla representing the global growth story and King Kong representing the credit problems. Godzilla ran the show through about July much to many bears disbelief, then came King Kong and he’s pissed. I have to admit i have been bearish on the stock market since early in the year and was flat wrong…..through July. When King Kong started slapping everybody around I felt shedenfrude, now I just want somebody to put him back in his cage but I am beginning to believe that nobody knows how.
