Back in the saddle

I just got back from the Las Vegas Money Show, so I'm going to be back online posting again. Quick hit: Bonds have bounced in the past few days amid more hawkish Fed talk. Presumption is that higher short-term rates now mean less inflation later. The yield curve is flattening as a result.

Also, one thing about housing. I want you to look at this graphic of sales vs. inventory for sale in my general area (greater West Palm Beach, FL). If you can't see this is a massive bubble exploding before our very eyes, I can't help you. The figures are tough to make out, but it looks like a 45% decline YOY in sales and a 140% increase in for-sale inventory. It also appears to show the market as having a whopping 17 months of inventory on the market at the current sales pace. Disaster. Disaster. Disaster.

http://www.ipre.com/trendg/images/palsld.PNG