Wow, that is a sober account from the UT. This subprime meltdown is only two weeks old. I don’t think you will really see it in the numbers until later this Spring. Regarding a pick up in activity I anticipate many of these transactions to fall out of escrow. I like this quote from the John Mauldin article;

“Last week I highlighted the excellent piece by Paul McCully of Pimco. His thesis is that subprime buyers are the plankton of the housing ocean. Without a healthy supply of plankton, the rest of the ocean’s denizens do not live well. (You can read the essay, and you should, at http://www.pimco.com ).”