The financial/political leaders have no choice but to sugarcoat the latest bad news, lest they create a panic by being too blunt.

It was the same during the early 1990s recession. Bush senior kept on saying there was no recession all through the elections. Of course, the people knew better and felt it in their pocket books and we all know who won the elections. It’s the economy, stupid. 🙂

In the real estate market, the real suckers are the people who need to sell but are waiting for a Spring 2008 bounce. They’ll be chasing the market all the way down.