If you spend any time watching "technical analysts"1 on the market watch shows--and who can resist?--you'll notice they spend a fair amount of time talking about "capitulation". This is what they call it when everyone decides the market isn't going up any time soon and sells out in the hopes of sheltering in safer investments. It is supposed to be a good time to buy because once everyone has capitulated, the market starts going up again.

I don't hold much faith in technical analysis. But looking at all the "just reduced!" ads in the Washington DC real estate classifieds, I wonder if homeowners aren't finally throwing the towel and trying to sell at any price.

1 A.k.a. "chartists" a.k.a. cranks