You make a great point regarding housing – and why housing is still unaffordable? As we both know, that’s because of government meddling (via homeowner bailouts) that isn’t allowing the natural “cleansing” process (i.e., foreclosures) that capitalism uses to rid the market of the excesses that occur during periods of speculation.

Our capitalist system is broken because creative destruction has become politically incorrect.

I think the stock market recovery in 2009 was impressive, but was it too much too fast in light of, yes, more government meddling via bailouts and continued lax monetary policies that are propping up our economy (see auto industry, banking, etc.)?

That being said, the market may continue to rise – despite what I perceive to be lacking fundamentals to support its current rise.

The commercial real estate market is, by some estimates, three to four times more oversold than the residential bubble that popped in 2008.

When that shoe drops, look for another severe hit to the markets. If it doesn’t come in 2010, it will be here in 2011.

Thanks for letting me air my two cents.

Best,

Len
Len Penzo dot Com