Thanks, Dave and others, for an intelligent conversation about the issue. I have one point to add: I think we should be moving as a country away from encouraging more investment in residential real estate. No more buyer incentive programs, no more deductibility of mortgage interest, no more govt guarantees for mortgage loans….

After a few years of shock, we will have an economy that is more productive, sustainable, and competitive. Any more gradual plan is, I’ve concluded, the alcholics plea for “just one more drink”.