Home Price To Increase?
Caps players have become very well educated about how over valued homebuilder's still are because of Floridabuilder's posts.
People will likely be misled about the strength of builders over the next few months. Today Big Picture referenced a WSJ article. He predicts average house prices will go up over the next few months and has a great graph at the bottom that shows non-seasonally adjusted home sale prices. The difference on the graph is far more than I'd have expected.
Mish has a post on pensions. I've stated a few times that I expect people's pensions that they believe they have in fact do not exist. I certainly don't expect to get what my pensions says it will pay. On a side note I mentioned this to another teacher and that Ontario's Teacher's Pension fund is short 12.7% on funding. I was corrected that it is one of the richest pension fund and there won't be a problem. I talk about this and no one believes their pension that they "paid for" will not deliver.
Anyway, pretty much any surplus in pension funds has been wiped out this past quarter. This article mentions pension might "use derivatives such as interest rate swaps in their portfolio," and that just makes me think, "egad, isn't that what the school districts that now have huge problems to meet current budget did?"
And, then in Mish's post also uses Buffett's quote on how corporations are cheating pension funds with an expectation of an 8% return. It isn't going to happen.