With Dow Below 7K, How Low Can We Go?

by Benjamin Domenech on 8:27 am March 3, 2009

Henry Blodget crunches the numbers. Megan McArdle comments: “You should see [housing market] plunge to about 50% of the historical price-to-rent ratio, which has generally stood around 1.1…With rents falling, that means housing prices would drop at least another third if they overshoot badly on the downside.”

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