Capital Growth Management LP founder Kenneth Heebner, manager of the top-performing U.S. real-estate fund in the past decade, said last week the damage to the housing market and economy from defaults of higher-risk mortgages will worsen. http://www.bloomberg.com/apps/news?pid=20601103&sid=aVeikRh0nLsc&refer=news
The only group that gets it right in that article: "Dresdner Kleinwort last week shifted its asset allocation to ``more aggressively underweight'' equities, and predicted ``an imminent shakeout of at least 10 percent.'' Dresdner has had a ``structural underweight'' in stocks since October 1996 relative to bonds and said last July that the S&P 500 may tumble as much as 40 percent in the event of a recession."