[quote=mike92104]I’m also wondering if the housing market has been sufficiently “decoupled” from the rest of the economy to finally allow prices to fall. Same idea as the private debt to public debt theory. I don’t think a sudden drop in housing prices today would do nearly as much damage to the economy since everyone has had two years to get their sh&* together. This along with the article about BoA increasing foreclosure dramatically in interesting.[/quote]

Don’t overlook the emotional factor. Personal housing is now the last bastion of ‘hope’. People have much value in their investments, may be out of work, uncertain future, etc. If the administration allows housing to correct too fast they know its the end of their majority political power.