Real Estate Derivatives

Nice piece by Zachary Karabell in Newsweek about Robert Shiller's push to establish a liquid market in real estate derivatives. Shiller has long been a leading proponent of real estate derivatives. I've plugged real estate derivatives before, and I still think it's important that homeowners have a way to reduce their exposure to fluctuations in the local housing market. Other interesting proposals along these same lines can be found here and here. I still don't think real estate derivatives will ever gain a sufficient level of liquidity to really get going, but I hope I'm wrong.