Socialism in America

Presidential Candidate Newt Gingrich Speaks at Iowa Faith & Freedom Coalition

http://www.youtube.com/watch?v=KB181Lm9shs

Watch Newt's speech that has everyone buzzing. The Des Moines Register wrote, "Simply put, Newt Gingrich was on fire, Iowa conservatives said after the Iowa Faith & Freedom Coalition banquet Saturday night. The crowd interrupted his address with at least two standing ovations and storms of large applause."

New Appraisal Rules--Why the Housing Market May Never Recover

These new government rules force lenders to use out of market appraisers and force appraisers to use short sales and foreclosure sales as comparables. These are not open market, willing buyer-willing seller sales and depress prices. The rules also limit the range of comparable sales which often is impossible in some rural areas.

These rules do not comply with generally accepted appraisal proceedures and change the valuation model. Dr. Afred Ring, who taught me at U of Florida and wrote the textbook, used to say when his students would tell him that they couldn't find a comparable sale, "have you looked in China?" That was his way of teaching that you could always find a comparable sale if you looked hard enough.

Real estate appraisal is an art not a science and relies on the judgement and experience of the appraiser.

http://online.wsj.com/article/SB10001424052748704853404575322993513715532.html

http://www.usatoday.com/money/economy/housing/2009-07-14-home-appraisals_N.htm

http://www.bmandg.com/Articles/ArticleView/tabid/94/smid/426/ArticleID/112/reftab/57/Default.aspx

Chart of Projection Below

What We Can Expect This Year In The Market

This latest Wave 5 will be equal to Wave 1 of the latest move since July 2010 when we top DJI 12,000. We will have then also completed a 5 count wave advance since March 2009. We can expect a sharp correction after that level is reached, but remember Wave 5's can extend further than the "rule of wave equality" if the market is extremely strong, which doesn't appear to be the case here. At best the correction will be severe but short and the market will continue the advance. At worse the current correction will be an extended B Wave and the correction since March 2009 will be a Zigzag 5-3-5 (both A and C Waves contain 5 counts) which will go sideways with the next C Wave making a slightly higher high above DJI 12,000. This may take all this year to complete. It is always a red flag when too many start agreeing with you on a market direction and must be taken as a contrary indicator.

How the Crisis Happened

Click here: Video - Opinion Journal: How the Crisis Happened--Peter Wallison of the FCIC tells what he's learned. - WSJ.com

Can We Fight The Tape?

Click here: this stock boom is nuts but you can't fight the tape saluzzi: Tech Ticker, Yahoo! Finance
Elliott Wave Theory states the a Wave 2 can retrace up to 100% of Wave 1. We have now done that. If we go higher from here (above DJI 11,250) we have to go to the alternate count of another Wave 3 of 5.
Doom and gloom will again have to wait for later.