[Emperor]

You are absolutely correct about the difference in markets.

While rents are higher in CA than in TN, the ratio of rents:value is completely in TN's favor

Landlords in CA are ecstatic if they can get rent that equals .5% of the property value per month. Landlords in TN regularly see rents over 1% of the property value.

In other words landlords in CA are claiming a loss because the rents don't pay the debt load (of course they have been raking in the appreciation), while landlords in TN are showing nice income streams (of course appreciation is lucky to equal inflation here)

Buffet is sitting on a lot of cash which seems very strange to me. If he's really bear on the market, then why doesn't he sell short the overpriced stocks in the market? Declines always happen quicker and with greater severity, historicaly speaking. Hedge funds anyone?