sysdo

Expect the Real Rally by Mid-2009

I don't think that the worst is behind us.

A great deal of the consumer spending over the past number of years was derived from people extracting the equity from their rapidly-increasing real estate investments. Even if the housing market "stabilizes", where is that spending going to come from? The labor market may strengthen, but many people are still going to be upside-down in their homes for years to come and reluctant to spend.

In my opinion, this is a situation that is going to take many years to play itself out.