Warning from CNN on financial markets

[Shoe]

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This isn't a "CNN Warning" it's from Jeremy Grantham. Jeremy Grantham is a very smart guy who has been bearish his whole life, so eventually he's going to be right, but the problem is figuring out when. He's a stopped clock.

But clearly Jeremy is at least partially right here. The resets on the bubble era 2 year arms is going to force even more housing inventory on the market which isn't going to be good for housing prices. My guess is the correction has one or two more years left.

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I agree it will take another 1-2 years for the housing market to correct itself. However, I do not believe this is going to have a major effect on the stock market at all, other than the occasional short-term selloff that will present great buying opportunities along the way.