Here's a stick I gotta get on. When I bought my house in the middle of 2005 - just minutes before the market peaked and started its long, sad decline - I spoke with many of you about my prediction that the investment would decline in value and my desire to short the investment. At the time, most people looked at me even funnier than they were already - after all, I was supposed to be celebrating the acquisition of a new home for my family in a wonderful community (it really is a wonderful community). But instead, I was warbling about designing a vehicle to short the investment, to protect myself against the declining value, much like one can short securities and commodities. Unfortunately, at that time, no nut-case thought any such possibility was sensible.
Roll forward a couple years. Now the idea has not only escaped the realm of my personal lunacy, but the product has been designed and is available on the Chicago Mercantile Exchange! Have a look here if you do not believe me. I have yet to figure it all out, but there is now the (theoretical) possibility for me to buy protection in the futures markets against my house's continued value decline. This is something that I plan to study. If I am going to lose my shirt, I may as well keep my shorts!
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