Is this a good idea??!!

Robert Shiller, of S&P/Case-Shiller House Price Index fame, is set to launch a new financal derivative product this month

MacroShares’ Major Metro Housing product, brainchild of economist Robert Shiller, will offer investors a way of betting on rising house prices by buying “Up” shares, or expressing pessimism via “Down” shares. Unusually, these won’t be backed with the underlying physical housing assets.

Instead, MacroShares will be tied to the Standard & Poor’s/Case-Shiller Composite 10 Home Price index. When the Up and Down shares float, proceeds will be invested in U.S. government bills to ensure liquidity. If the index moves up, the trust behind the Down shares will shift a corresponding portion of its assets to the Up shares trust, raising the net asset value underlying the Up shares. The prices should follow.

Aren't financial derivatives tied to real estate what helped us into our current global financial mess? Or will the ability to invest in "Down" shares balance the optimism that led to valuations at 30x with mortgage-based securities?

Let's just hope AIG isn't planning on insuring your investment in Major Metro Housing!

SOURCE: WSJ