Hedging real estate and Paris Hilton

At our October Connect conference in Miami, Robert Shiller, the rational man who is an expert on irrational behavior (authored: Irrational Exuberance), spoke about new ways of hedging residential real estate risk. This meeting was an attempt by Inman News to bridge the gap between Wall St. and real estate, as the banking community concocts new tools that might some day be available to consumers for hedging their real estate bets. The outcome could be increased home sales if homeowners and lenders can reduce their risk when buying.
These tools are SLOWLY beginning to penetrate the market. It reminds me of reverse annuity mortgages, however, interesting idea but VERY slow adoption.
Communication is part of the problem -- two industries with two distinct languages.
For example, today HedgeStreet announced new housing markets for its hedge product. You find out about this opportunity under a tab dubbed: “Trade Binaries”, which is intuitive -- well, not exactly.
But language is not the only barrier to adoption.
Some things with dubious value such as Paris Hilton are quick to catch on. Other things such as paying down credit card debt and opening an IRA do not have the same appeal as a crotch shot and late-night celebrity girl squabbles. Too bad.

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