One reader suggested a thread about incomes and home prices. "Let’s discuss the latest report showing median incomes declined: 'Income growth was held back in from 2001 to 2004, largely because of a 6.2 percent fall in median wages, the largest source of family income, the report said.'"

"While there is a difference between the median and the average, I think this shreds any arguments that housing prices have gone up due to the fundamentals of rising incomes. Lax credit standards and the willingness to levarage based on creative finanancing, are the clear reasons why housing prices have seen their steep rise. There seem to be few other contributing factors."

From the link, "Americans may feel much richer because of soaring home prices, but they're not. U.S. families' wealth stagnated during the economy's recession and recovery from 2001 through 2004, as lackluster wage growth, sagging stock prices and rising debt levels offset the gains from higher home values, the Federal Reserve reported yesterday."

Another saw a related topic, "Others have speculated on this blog about where the next bubble will happen as money flows out of RE. In yesterday’s WSJ, an article pointed out that trades by individual investors at discount brokerages rose 30% to 40% in January over December, and money flowing into stock mutual funds last month was at a near record level. Charles Schwab reported $4.5 Billion in inflows, the highest amount since February 2000."

"So the question is, are we headed for another stock bubble? Heaven forbid, are in-duh-viduals using HELOC money to buy stocks?"