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The Pope is not alone in being perplexed by the extended slide in American real estate asset prices, amidst what Federal Reserve Chairman Dr. Bernanke calls a prodigious global savings glut. The Vatican is concerned insofar as it is one of America's (and the World's!) largest private real estate concerns, and it too has been seduced by gains to extract equity for the pursuit of otherworldy and more spiritual purposes.
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The S&P Real State Index (S15Real Index) seen here left has resoundingly vindicated Mr Market's June1 explanation of a "month-end bear bounce" amidst a secular erosion in values. How this squares with "the savings glut" in general, and global asset prices in particular remains to be seen. Will US Real Estate Price bottom and bounce after such a vicious correction or will global asset prices moderate in response to a change in the quantitiy and pricing of end-user availability of risk-capital?
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