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CNBC’s Rick Santelli interviewed Harry Dent yesterday. Dent has been on record predicting a titanic bear market in equities beginning sometime over the next year.
Dent pointed out that Spain has higher unemployment, as well as higher total public and private debt than Greece. Spain also had a bigger housing bubble than the U. S., according to Dent.
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Robert Shiller, Yale University professor of economics and co-founder of the Case-Shiller index, was on CNBC’s Squawk Box Europe this morning. Shiller discussed housing prices in Spain, which have been instrumental in its economic downfall. Shiller also commented on home prices in the U. S. and the psychological and economic factors effecting prices.
Shiller said Spain has had a huge bubble, but he didn’t know if we can measure prices there accurately. Shiller added it would be too difficult to make a 5-year forecast as posed by the interviewer.
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Citing housing affordability and pent-up demand, Doug Kass told CNBC’s Maria Caruso Cabrera he would put money in the big banks with large real estate exposure.
Kass mentioned there had been a decisive positive turn in the jobs market, mortgage rates are at generational lows, and housing surveys are improving along with consumer confidence.
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Consuela Mack interviewed Yale professor Robert Shiller regarding his views on the economic malaise, the housing market, and the stock market. Shiller believes U. S. citizen’s pride and spirit was hurt when S&P downgraded the credit rating.
Shiller believes the state of the housing market has a greater impact on confidence than the performance of the stock market. He doesn’t believe home prices will make progress in real terms in the next five years. He added that the 40% decline in home prices has brought them close to the long-term trendline, but they could overshoot to the downside.
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A couple of years ago I shook my head when an individual suggested a remedy to the housing oversupply was a bulldozer. Well, the time has come where this is at least a small part of the fix. Bank of America plans to donate unwanted and blighted homes in select locales and contribute to their demolition.
Government funds will also be employed for the final “solution.”
Read More: Bloomberg
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Larry Kudlow interviewed Gary Shilling last week. Shilling continues to see a double dip recession in our future with housing values declining by 20 percent. Under this scenario, Shilling forecasts the yield on long term bonds to fall from 4% to 3%. Shilling says 30 year U. S. treasury bonds are his favorite investment and he looks for 20% capital appreciation; with a more generous 30% gain for holders of zero coupon bonds.
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