Fed Warns on Commercial Real Estate, Stock Valuations

``Valuations in commercial real estate "appear increasingly vulnerable to negative shocks, as CRE prices have continued to outpace rental income," the Fed said in its semiannual Monetary Policy Report to Congress. The Fed noted that prices exceed their pre-crisis peaks by some measures.'' -- The Fed is probably going to regret this candor soon enough (or maybe their goal is to slam markets down to justify a continuation of ZIRP/NIRP/QE, or expansion of them, to continue to prop up the banks)...