At some point you have to deploy capital, and everyone needs a place to live, but do not be fooled.
The economy as a whole will get worse, and truly the only reason why they are pushing health care reform, super train, etc. is to spend money and to hopefully create jobs and put band aids on gaping open wounds.
There are a LOT of people living in California in their homes who have not paid their mortgage in months. There are plenty who know how to play the “game” and have been there for a year to 18 months.
I can go on and on, but it is too depressing. So make what money you can, wherever you can.