Free Fallin

Here are lyrics from two of my favorite Tom Petty songs:

• "Yeah I'm free, free-fallin" - Free Fallin
• "I'm learning to fly but I ain't got wings, Comin down is the hardest thing, I'm learning to fly around the clouds, But what goes up must come down." - Learning to Fly

Another day and another horrible housing number. This morning S&P/Case-Shiller realeased housing data for the month of September. The Composite 20 index is now off 21.8% from the peak and there are no signs that this epic fall will end anytime soon. The bubble markets (Las Vegas, Phoenix, Miami) look like they are in a race toward zero. Although markets such as Dallas and Charlotte are holding up much better, they are also down (no one can escape the great housing collapse).

Any recovery in home prices is many months if not years away and when we do reach the bottom the "rebound" will leave many wanting. I expect housing prices will return to annual appreciations we saw before th bubble, specifically home prices will rise roughly in line with incomes...something along the lines of 3%-5% annually.

Father Guido Sarducci?

Anyone watching CNBC yesterday afternoon was treated to a one-on-one interview between Maria "Money Honey" Bartiromo and His Royal Highness Prince Al-Walid bin Talal bin Abdul Aziz Al Saud (what do you think his nickname was as a kid?). The interview came complete with sunglasses, tan colored scarf and vest, prayer beads, and cane against a backdrop of camels, donkeys, goats and horses.

The interview is worth watching for entertainment purposes alone but I found myself thinking the entire time that I was watching Father Guido Sarducci explaining his investment in Citi. Tell me these two aren't long lost brothers.

The Super Rich are Vulnerable Afterall

Sorry I haven't been able to post anything in the past few weeks. If you don't already know, the markets have been quite hectic, probably the biggest under statement ever.

I think the world may finally be coming to the realization that we are, how do you say, f**cked. It looks the the floor in the art market has finally dropped out and even the celebrity playground and oasis in the desert Dubai is feeling the effects of the global financial meltdown.

I think it is just the beginning and we will definitely see more stories of pain across the globe. Stay tuned.