From my experience you’ve pretty much nailed the biotech argument on the head.

Biotech doesn’t pay as well as high tech due to the massive amount of overhead involved in getting products out. Everything from cogs to research and equipment is very expensive and clinical/regulatory work adds exponentials to the cost. Wages are getting better over time but for dollars-technical skills ratios high-tech is much better. As for outsourcing R&D there are cultural/skillset issues that offset the benefit in cost reduction and time. It’s not very cost/time effective for cutting edge R&D. Generics development is very effective overseas.

Now back to the foreclosure topic, at almost 4X the foreclosure rate of the peak in the 90’s and not letting up, I’d say we’re still in for some serious price declines still. That would be additive to SD’s mention of rate increases and unemployment. With Fannie Mae and Freddie Mac being claimed insolvent publicly and the chance of them going down we could see rates go to the moon in the near term as the Gov’t attempts to backstop and bailout. Ouch!