Bolling: A House of Cards on Solid Ground

Made in America -- A Silver Lining

Built anywhere else, we might be worried about a global recession ... or worse. I am in the camp that says we will pay a high price for this mistake, but we have a solid foundation for recovery. This may take a few quarters, but I think the massive and rapid deleveraging of the housing and credit extension bubbles is a healthy thing for future growth.

I expect there is more to come, but we are almost two years into this real estate correction, and recent history shows that they rarely last four. Three years is possible (and my expectation), but four seems too extreme. It may be over sooner than that -- events and circumstances will draw Americans to buy homes again. I believe there are real estate opportunities around the corner, but be very wary of the deleveraging sword. It can slice value quickly.

And let's hope the next house is built on stronger principles. No more houses of cards. Card games should be left in the casinos in Las Vegas and Atlantic City, not at the corner of Main Street and Wall Street.

As always (this seems obvious, but so hard to do):

"Trade (and invest) with your head, not over it."