I wholeheartedly disagree. I do not think the housing market has much further to fall except in prime real estate areas(Beachfront, high demand areas like Orange County). As long as the economy continues to be growing, albeit slowly, and the liquidity of loans are still available(Fed is making sure of that) the housing bubble will never pop. Deflate slowly? Sure. Or more likely IMO stagnate for multiple years, thereby crippling the new construction house industry. The glut of new housing built on easy credit in the 2000's will be worked through the system slowly. Once it is, most will have forgotten if our tax dollars ever were paid back by these F-ing bailouts. But things should return to normal and we can all bitch about the oil prices again.