The housing thing is really interesting to watch. It comes down to what owning a house means to the individual. For me and my wife, it is a place that provides shelter. A place we feel safe. We own it and as long as we pay our taxes, we will always have a place to call home. We love our yard and I have a place in the country to shoot my guns and play around with my tractors. Now it appears some people are really hung up on how much the house is worth. To me it really matters not except that the more it is valued, the more the county charges me in taxes. We don’t use our home as an ATM, so I could give a hoot how much equity is there. The only time it is ever going to matter is when (if) we sell. As long as our jobs remain good and we like the area, we’ll stay put. Been there nine years and may be dug in for the duration. My own opinion is that home prices are way out of whack with salaries. But, if there are enough people willing to use exotic financing, the housing bubble could go on forever. One idiot loses the home due to a reset, but another one steps up and finances with a new loan, with a teaser rate. They lose the home and yet another idiot steps up. The losers are the “homeowner wannabe’s”. I think as long as the banks can get a loan on the home, they will be fine. Look at what people are willing to pay for a car. They are willing to take on a loan as long as 72 months now. That, is crazy. So, they continue to fuel things. Instead of car prices dropping, the length of payoff has been extended. Hard to say how things will play out. At some point maybe people will be so burdened by debt that something will give.