I was using "housing" to simplify the whole real estate and credit issue. For example, upside down on houses has people **gasp** not able to use their homes like ATM's to go out and buy things. The Wall Street Journal talked about the hundreds of billions that banks are piling up in the federal reserve system, afraid to lend to anyone. A more accurate description is to say the "real estate/credit market caused a crash in investment houses and banks, leading to a freeze up in the commercial paper market, which caused the current market crash," but it's verbose.

And I hate hearing over and over (on the news, not anyone here) that "the housing market has to recover before the rest of America can recover." A house on just over 1/8 of an acre in the middle of the desert outside Tucson, with almost zero yard, and they're still wanting $375-400k for it. My buddy's house in a nice neighborhood, edge of Tucson, 2400 sq ft, no yard $465k (down from a peak of $575k).

The median income for a household in Tucson is $30,981, and the median income for a family is $37,344....before the crash. How can houses be so incredibly out of whack with income? I argue the problem is too many people for too many *decades* have been living beyond their means....and this fix is *not* short term. People need a serious reality smack, and it's here.

It won't be "fixed" until people realize that keeping up with the Joneses by trying to spend more is a fool's game, and buying things with cash instead of paying twice as much on credit is a fool's game.

I'll just be happy when I can afford a decent house here. Renting is still the better option as some people are happy to have any help pay for their home. My heart doesn't bleed for anyone who loses their shirt on their house. I feel worse for people who were close to retiring and hadn't moved enough money out of the market and into bonds, and were trusting a financial adviser.