Deeper meaning that reversion to the mean will cause an overshoot when the worst of this is realized by the public at large. As much as I like Rich, I don’t agree with everything he thinks. I’ve moved beyond the housing price symptoms and into the economic causes and I think things are going to get a lot uglier than even the bears realize. Too many people on this site have a very “micro” view of what’s happening right now. The real estate bubble is not local, it’s national. It’s just that areas like San Diego have seen the most extreme effects of it due to the desireability of the location. It’s always been expensive relative to other parts of the country and therefore suffers more from extremes in lending practices and economics. The internet was not present in the last bust. There was major information asymmetry (spelling?). Things are much different now.