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WSJ confirms continuing real estate blow-out

http://online.wsj.com/article/SB10001424052748704680604576110442537531026.
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“There are just not a lot of renters with confidence, with a down payment, with good credit, and without a lot of additional debt,” said John Burns, a homebuilder consultant in Irvine, Calif.

Mr. Burns is absolutely right. In this age, if someone is intelligent enough and lucky enough to have funds for a down payment, good credit and low debt, then you can rest assured that they’re smart enough to have no confidence in Cramer’s bottom call.

How many smart renters are going to make a heavily margined investment of $200,000 on an advance turnaround call on an asset class with a long and growing history of falling prices? Not many.

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