I disagree, these are not historically comparable circumstances that we are facing right now. This is not a housing bubble…this is a globabl liquidity bubble. The housing prices were driven by easy credit, speculative demand, and fraud….period. There are several layers of that nonsense built into the current housing prices. Those layers can be stripped very easily by the msm with some scathing exposes on things such as how filipino nurses got defrauded in Temecula or any of the houses being traced on the BMIT blog or any other number of blogs. Check what happened in Irvine at Irvine Renters blog…one zip code lost over 30% relative to 2006. Another thing you are ignoring is jobs…or more specifically real estate related jobs in SoCal. A lot of those high paying bullshit jobs are going to go bye bye in the near future and many already have.

We are headed into asset deflation and credit contraction. Whether you want to admit it or not. Stop looking at the micro and start looking at the macro level…it’s not a pretty picture.