After the release of FOMC minutes yesterday the bond market priced in the 60% chance of rate increase in June. They were worrying about inflation, overheating economy and possible 50 point rate increase.

Don't be fooled by inflation fueled by borrow-and-spend spree of shortsighted consumers. The Europeans lead by angry Teutonic band are raising rates and Japanese are ready to pull the money plug. Money drought is coming.

Don't be fooled by stock market. As Forbes' Ken Fisher noted companies are printing bonds, deteriorating credit and using borrowed money to buy back stocks, pay dividends and acquire less expensive competitors.

Better look at my favorite graph (thanks Asha Bangalore) of home price dymamics in prospective:

Do I even need to comment?