JWM: Wow. I know that parts of San Diego County, as well as Inland Empire and Riverside/San Berdoo were having problems, but Orange County? The OC has usually been pretty resistant to downward pricing pressures.

It’s also interesting to note that the major RE players are shifting gears to take advantage of the “new paradigm” emerging. Much like sharks sensing blood in the water, these guys know enough to realize that the market has changed and to make the necessary moves to capitalize on that.

Of course, I am sure that Scruffy will insist that this is nothing other than a temporary setback and all will be well shortly. Shortly, however, might be several years off.