At the bottom, not only will the sheeple NOT be talking about real estate being a good investment, they will be talking about what a HORRIBLE investment real estate is and how stupid anyone would be to buy right now

One of the likely scenarios IMO is that in 2008/2009 the REIC and sheeple will believe that the worst of the correction is over because there is a lull in the reset of ARMs (see Credit Suisse chart)

Then the Option ARM resets start in 2010 and continue through most of 2011

In 1929 market crash terms, we are currently in the first downleg of a huge correction – in 2008/2009 we are likely to see a cyclical upturn that the REIC and sheeple will paint as being the end of the correction – the second leg down occurs in 2010/2011 and absolutely crushes the sheeple and REIC

This seems to be the way the bear likes to work – big downleg followed by a noticeable (maybe even exciting) upleg – this upleg sucks in the last of the bulls’ money and then the bear wipes out the bulls with the final downleg