 |
| Michael Bloomberg was affiliated with Salomon Brothers before launching his own firm Bloomberg News and later becoming mayor. (Photo credit: Wikipedia) |
In what was one of the most entertaining and informative live debates on Bloomberg TV since Paul vs Paul, yesterday the news station hosted Pimco's Mark Kiesel in his role as house bull (who supposedly sold his home in 2006 which according to some media makes him a swing-trade expert and top, and thus, bottom-caller) against perpetual skeptic Gary Shilling, who obviously does not share the optimism of PIMCO. His biggest concern? The same as Zero Hedge's - record combined (traditional and shadow) inventory: "We estimate that there are 2 million inventories, both visible and shadow inventories over and above normal working levels. That is a lot. Back in normal times, we built about a million and a half houses a year, so two and a half million is a tremendous overhang. Excess inventories are the mortal enemy of prices." His conclusion - housing has at least another 20% lower to go.
Some highlights:.. Continue to read.
No comments:
Post a Comment