This is the time when the house-of-cards that is corporate crony capitalism will have to withstand the worst hit it has taken in its inequitable, wealth-to-the-wealthy history. The housing crisis is just the catalyst for the rest of the dominoes to fall.
It is a good thing to remember, though, that banks get bailed out while people get thrown out. The government, while not understanding how, will try to do everything to artificially prop up this dead dinosaur, beginning with the ridiculous "stimulus" rebates (used mine to pay down debt - not an approved usage). We need to be ready with our alternatives at the right time in the right place. Participatory Economics Now.--Pete
AMERICA'S HOUSE PRICES ARE FALLING EVEN FASTER THAN DURING THE GREAT DEPRESSION
ECONOMIST As house prices in America continue their rapid descent, market-watchers are having to cast back ever further for gloomy comparisons. The latest S&P/Case-Shiller national house-price index, published this week, showed a slump of 14.1% in the year to the first quarter, the worst since the index began 20 years ago. Now Robert Shiller, an economist at Yale University and co-inventor of the index, has compiled a version that stretches back over a century. This shows that the latest fall in nominal prices is already much bigger than the 10.5% drop in 1932, the worst point of the Depression. And things are even worse than they look. In the deflationary 1930s house prices declined less in real terms. Today inflation is running at a brisk pace, so property prices have fallen by a staggering 18% in real terms over the past year.