"There are ten or 20 markets that are extremely overvalued, " says National City economist Richard DeKaser .

FORBES: Look Out Below, Home Buyers

"By saying this, the Fed is encouraging institutions to do so, " said National City's chief economist, Richard DeKaser.

FORBES: The Fed Primes The Pump

Richard DeKaser, chief economist at National City, predicted a 50-point cut and thinks another 25-point cut will come in October, the next time the Open Market Committee meets.

FORBES: Magazine Article