A fund manager’s contrarian real estate view

Bill Fleckenstein outlines his thoughts on the real estate boom and its impending bust, and it seems he gets the idea of market dynamics. He better, or his hedge fund clients will be none too happy.

Lets qualify Bill for a moment – he is purportedly a short-only manager, and I have not seen his returns, so I take what he says with a grain of salt. But he describes the concept of one family’s housing debt burden bringing down a neighborhood with logic and vigor. I can’t help but listen.

It would have been nice if he didn’t blame Alan Greenspan for the whole mess though. One man can’t do it all, and the mortgage market is a hell of a big one to handle. The individuals he describe as in trouble may not have been greedy, but the market for housing paper is. Enough said.

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