outtamojo you captured it well. In this corner is a true free market where struggling industry must layoff workers as the economy contracts. In the other corner is the government that seems to think they can tax everyone and now pick and choose what industry they want to essentially subsidize in what can only be characterized as an effort to stall things.
As the economy continues to deteriorate it will be no surprise at all to see the incoming administration attempt to throw yet more tax money and IOUs at the problem.
I do believe higher end areas like the area WFB is looking at will continue to run downhill but the pace will be agonizingly slow. As many of already know there is a tsunami of resets coming, do not FOR A MINUTE think that the likes of Barney Frank and all of the other people in charge do not know of the same thing. I am sure they have plenty of magic money to help continue the great stall.
To me this will culminate in a prolonged period of depreciation with chunks down that could happen in seasonal slow times like late summer. Tough to say. However I think that it will take awhile and those people looking for double digit decline bargains from where prices are now are going to be disappointed. There may be a onesy twosy (see the current listing on Chapalita in Encinitas) but those will get bid up.
If the government keeps quiet and lets the market run then we will see some nice large declines and ALL be very happy.
