Kass: They're Still Not Getting It on Housing

This blog post originally appeared on RealMoney Silver on Oct. 25 at 7:26 a.m. EST

Last night I appeared on CNBC's "Kudlow & Company" with my favorite host, Larry Kudlow, and I went face to face with Dr. Wayne Angell, Jim Lacamp, Dennis Kneale and Dr. Robert Shiller.

I want to give you a rundown of the show because it offers pretty clear evidence that many of the same misconceptions that surrounded the inflating of the housing bubble are still around -- and as such are still dangerous to your financial well being.

So read on.

Most of last night's discussion involved the subject of housing and the meaning of yesterday's turnabout in equities.

Angell encouraged the Fed to move aggressively in order to revive the housing markets. Later on, I questioned him on this, asking why another rate cut would help when the September cut didn't -- indeed industry statistics have worsened. He just said I was wrong, but I didn't really get an explanation.

Shiller put the magnitude of the housing situation in perspective. The two-year housing drop has continued, and the future outlook is not optimistic for the sector as the correction will continue for some time.

The optimism from the panelists was summarized by my pal Dennis, who started by denying that there was a housing problem, and stating that the housing bogeyman is not that important, that most homeowners have benefited from the rise in home prices during this decade -- and even if they sold, they would end up well. He went on to say that the recovery in stocks yesterday was testimony to the bull market.

What?