I just read an article about the bottom of housing prices . Story here The article had a pretty sound basis and it recycled the Credit Suisse picture so here is the low down. Housing prices will hit bottom when you can make a profit renting out a house from day one. The general ratio mentioned in the article was 1:7 where you would multiply the yearly rent by 7 to get the price the house would have to be about to break a profit from renting. Ok so here is the scary mortgage reset picture. 2012 looks like the year where we might start to see some sunshine. However, we still have to wait on the credit to free up and the banks to restore their reserves. In the meantime, should we buy some 50 pound bags of rice? Soros seems thinks we have a commodities bubble that is going to start unwinding. But of course he is holding stock to benefit from this His fund’s top ten holdings Most of the companies that support the commodities producers look like Intel before the dot com crash.
