As the Walrus Said

"The time has come," the Walrus said, "to talk of many things." This week we talk about whether we are in a housing bubble, look at stock and bond market directions, the problems with the dollar and much more. It is that semi-annual time when I make predictions (which is the term for educated guess), and then watch to see what actually occurs.

This week I begin with a look at the housing market. I probably get more questions on housing and real estate than on any topic, other than stocks. I am going to try and do a quick analysis, and then let that be the jumping off point for my economic predictions.

There has been much written about the fact that we are in a potential housing bubble. Typical of the concern is that voiced by Business Week: "Call it the double bubble. A housing bubble may be developing--right behind the Nasdaq bubble.....In fact, falling equities have led many well-heeled investors to shift money into residential real estate. Robert J. Shiller, author of Irrational Exuberance, which predicted the Nasdaq crash a year before it happened, now…