Here's an excerpt:
"In essence, prices are poised for a fall far steeper than the 2.2% year-over-year drop in the median home price reported Thursday.
"Home-sellers are clearly not happy with the offers they are receiving -- if they are receiving offers at all -- and the disconnect between presumed valuations on the parts of buyers and sellers remains fundamentally hung up.
"The bubble disbelievers (aka cycle deniers), soft-landing lubbers and those who talk confidently of "containment" as if subprime lending was a virus that could be quarantined (or, perhaps, a rogue government meant to be invaded and toppled), all share a shocking blind spot: they refuse to acknowledge that all lending, as Countrywide itself conceded earlier this week, is interdependent.
"Debt itself is no longer 'contained,' but has actually been unfettered to allow the freer flow of investment dollars. Actions aimed at minimizing the perception of risk levels for investors and borrowers have created the unintended consequence of enabling those unprepared for bad news to walk right into it.
".... Recent reassessments by the National Association of Realtors predict that housing won't recover until at least 2009 are welcome, if a little late."Read the whole story here.