KSengineer

Real Estate Bubble Is Only in 4 States: CA, FL, NV, AZ

I think this is all about semantics: crisis or not?

I live in Kansas. I can tell you that the mortgage mania was here. I can tell you that the real estate market is very different today than it was 2 years ago. On Friday, a Kansas City (local) based bank was taken over by the FDIC. If the author is trying to say that only four states are in a crisis and the others are doing business as usual, that is definitely not the case.

If increased savings and paydown of credit meet the current situation, then I don’t know how we can avoid a recession over the next couple of years. We’re coming down from a super-heated economy artificially supported by unsustainable borrowing. Unsustainable has won the day. For those who lose their jobs, this will be a crisis and I doubt it will confine itself to four states.

Bullish Sentiment Trend Continues Lower

Someone please explain how this chart tells us when to buy or sell. I cannot see a correlation between the bullish sentiment trend and a low or high in the S&P500, at least for a medium or long term trend.