Gary Shilling on CNBC (Treasuries vs. Stocks), Home Index Rolls Over (ITB, XHB, TLT, SPY, XLF)

Gary Shilling of A. Gary Shilling & Co. was on CNBC on 10/22/2010. He sees home prices falling by another 20% and mortgages under water rising to 40% from 23%. Maybe that is why bank indexes are underperforming the Nasdaq and commodities (+ the mortgage put-back crisis). He also sees the 30-Year Treasury yield hitting 3%. Before Shilling came on, CNBC reported that the Clear Capital Home Data Index was rolling over. He says watch the standoff between Treasuries and stocks. One will give. Watch the S&P ETF (SPY) chart stream live here.

$USB (30-Year US Treasury Bond Price) vs. $SPX (S&P 500)

Related: Shilling was interviewed on a Bloomberg Podcast on 10/14/2010