Updated Housing Chart....

Here's a link to an updated chart by Robert Schiller on housing going back to 1890. As you can see from the chart.....the swoon south is not over. What's another 20% - 30% among friends?

I think most people except Kudlow, Cramer and Kneale (kind of sounds like a crooked law firm doesn't it?) know that the housing market has further to go on the downside. Most people understand that the upper end of the market is the next sunami that is coming ashore this year THROUGH early 2011.

I know......Cramer called a bottom to the housing market a couple months ago. That should be enough for ANYONE to know that we certainly haven't reached the bottom. Most people who have a clue about housing......don't see a stabalization until 2011 at the earliest. California is trying ANOTHER 3 month ban on foreclosures........which will only delay the ongoing decline.

And longer term........there are some REAL issues with the demographic makeup of the housing market.........and it isn't pretty (baby boomers unloading multiple homes........homes becomming smaller........people moving from the burbs to the city........etc). Could be a very rough decade for McMansions.

So far interest rates haven't spiked up too high yet. But if people start shying away from US treasury bonds.........rates will be going up. Then we would really be frocked.