this time is caused by easy credit which is the

results of greenspan aggressive 13 times interest rates cut. Jobs are fine. But housing price has been too high as a result of easy lending and later on aggressive and speculating buying. Although the housing slump has been for a while but housing price which ultimately matters refused to drop down to acceptable levels for new buyers. Fed and banks have been helping to retain this high level housing price coz the consequence is too big to let it go.

It is very simple. Nothing is wrong. Jobs and american nonfinancial/mortgae companies are doing fine. It is the matter of price which is beyond the acceptance of new buyers. Some new buyers who can afford a house (i am one of them) are watching. they are tired. they lost interst in this crazily manipulated market. If your house in palo alto increase 1 million, your son or grandson has to pay 1 million more for same stuff. Housing, by nature, is just a shelter for social stability and nowdays it becomes the fastes way to get rich.

As long as housing price refuses to drop down and new buyers purchasing power can not keep up, housing slump will continue. You do not want to sell cheap. Why the hell I have to pay double price with double tax for same stuff? The sellers either reduce price or wait for buyers to catch up. it is very simple. However, it is always true that buyers have more time than sellers.