What I found really interesting was this bit:
"People think that there is a strong historical uptrend [in home prices]. In fact, there is not. If you correct for inflation home prices in 1990 where the same as in 1890. That reflects the fundamental fact that housing is a manufactured good. It depreciates, by the way. And even if it doesn't depreciate, they can make more of them."
1990 was the peak of the Stockmarket bubble in the US. A house is where you live, why would you treat it as if it were a truly liquid investment?