Yea except that our cities and state budgets were set at peak housing tax intake levels, then you have all the people who cannot/will not sell or fix or doing anything much to their main expense (and the main revenue generator) until they are above the price they paid regardless if the house is underwater currently or not.

As an example: Most people are not going out to buy a new car unless they feel rich or they have no choice, and then they will buy less car ect…