I hope I didn’t just pick the exact wrong time to sell my house.

OK, I am losing a ton of equity. Shame on me for buying in 2005. (I still have some gains elsewhere from a house we had between 2000-2005.)

But I figured if I sell now, my purchasing power will be greater than most in two years because of further price declines and an intact credit score. (And my wife and I make good money.)

I wouldn’t be surprised if this bailout will a) clear the credit stain from those who just walked away from their house, and b)artificially prop up house prices to boot. I hope capman and peterb are right that price/income still has no choice but to correct.