Yea this is why I think it’s going to take a full blown recession before prices drop much in the better area’s.

At the same time I think the Fed-Gov will go to extreme measures to aviod a recession at this point for two main reasons,

1) By 2003 (near bottom of last stock market down turn), Private and public pensions funds were going bankrupt one after another (the Fed can’t afford to bail many more of these out).

2) The economy is seen as a large part of the war on terror.

Translation: The economy will look good on paper, but there will be a large part of the population that will not feel all that good about it.