contrarian: You can drive through neighborhoods in Temecula and Murrieta that are solidly middle class, and see Mercedes C and E class cars parked right alongside Yukon Denalis, Caddie Escalades and Hummer H2s. You’re talking about $100k plus worth of vehicles, and this doesn’t count the jet skis, boats, RVs, etc that these families “own”.

The more astute posters here have pointed out that this is not a housing bubble, so much as it is a credit bubble, and the LA Times article points that out. We are addicted to debt, whether it’s in the form of exotic mortgages, car loans, or commercial credit. We threw ourselves one hell of a party, and the bill is about to come due with a vengeance.