All are not bad for RE values. Limited supply creates stability and or upward pressure. We have limited supply. The shadow inventory is actually a fraction of what the most bearish (like yourself) beleive. The short sale epidemic is not growing but is rather becoming more orderly and predictable. The looming Option ARM issue is a complete unknown and will likely be addressed in some shape or form (forbearances, loan mods etc.).
The worst has come and gone already. The best is a distant dream but your nightmare predictions did not come to pass nor will they. Take it like a man.
