algorithmbetting

Housing Prices Are Still Headed Down

"if everyone is negative on real estate, doesn't that make it a good time to buy?"

not sure everyone is negative are they?

just think about the demand on the way up -first time buyers, immigrants, investors. they built as fast as they could to give them what they wanted.

and now on the way down - how many buyers? and how many sellers? this housing market crash will go on for a while yet just to clear the market of unmatched trades!

A Misleading Chart on Credit Default Swaps

Correct there are equal and opposite positions to each swap. Someone loses but at the same time someone wins. But let's not lose sight of the main thrust in the referenced article.

The issue is there is a lot of financial exposure out there that wasn't around 10 years ago. I even read of a furniture company today which has large investment in headge funds. The size of the CDS market shows there are so many more entities gambling and quite simply, the more people that go into a casino, the more people will be left broke.