“Home prices do need rescuing! And guess which way is the rescue? Down! To affordable levels where demand can be created and sustained by folks with real income buying real houses. Rescuing is not keep artificially inflated prices at a premium where people have to spend every last dime of imaginary income to find a place to live.

Let the rescue happen. Let prices come down to where they are supported by demand driven by common-sense underwriting guidelines and we?ll see a return to growth and prosperity in the economy that is healthy and sustainable.”

I totally agree. It hurts a bit, knowing that at least 10% of the value of my home (bought last spring at the height of the market here in Seattle) will be gone in a year or two but on the other hand, when I bought, I sold a condo that was at least 10% overvalued…so it all works out, unless you are a first time buyer right now, with nothing. I think a government bailout just drags this process out, and makes it more and more difficult for families earning a living wage to afford a home.