I have to guess this has been talked about before... but...

First here's a quote:

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"The U.S. economy has weathered such episodes before without experiencing significant declines in the national average of housing prices," he said. "Nevertheless, we certainly cannot rule out declines in home prices, especially in local markets."

But he made it clear that he was not overly worried. A decline in housing prices "would be accompanied by some economic stress," he said, but "the macroeconomic implications need not be substantial."

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What do you think? You think a lot of people are going to be buried in houses that are worth a lot less soon, or do you think it will be a minor dip?

While we're at it, how do you explain the fact that short money (prime) is climbing (yes, I understand the Fed. Res. Rate... keep reading)... yet long money (30 year morts) are going down.

Pete