The housing debacle is only beginning, and it will get worse before it gets better. As long as the government doesn’t do anything stupid, like foist a bailout onto the taxpayers, or keep printing money to prop up a few big banks, or interfere with lenders and borrowers and their transaction of business.
In other words, as long as the government stops doing what they are doing, this too shall pass, within two to three years.
Unfortunately, the government keeps expanding the size and scope of government; fighting undeclared wars; meddling in the affairs of countries we ought to be leaving alone; committing troops all over the world when they belong here defending our borders; dishing out welfare to corporations, illegal immigrants, rich farmers, and poor countries; and foisting bailouts onto American taxpayers.
And the American–to date–has been too stupid to call the government on their collective shenanigans.