Well, I think you are wrong. The sentiment among regular people (people around me at least) pretty much reflects this blog and many blogs that are out there. Majority are super bear, some do think that things are not going to be as bad as everyone says. But no one I know is bullish and recklessly buying now.
Not sure why we even need to wait for TIME to put it on the cover. Almost all articles that deals with economy nowdays mention US housing recession to a degree. Even a farmer living in a village in China knows about US housing problems.
It could get worse, obviously. But its definitely not good right now.
