Housing Bubble Bursting

USA Today: Sellers sing the blues as price drop sets record

People just don't learn. Just like the last tech bubble, "everyone was doing it!" was the excuse for getting oneself into this huge trouble!

This housing decline is going to be sharp and fast! Many people still don't realize what's ahead of them. For example, the west states have a median housing price of $332,000, while the median household income for the region is only $50,000 (2005 data, InfoPlease)! I cannot imagine how I can owe such a high mortgage with a $50K salary. A 50% price decline would not come as a surprise to me. The worst thing: having a mortgage is like trading stocks on margin! We should see a lot of fore-closures.

Will this trigger a stock market crash? I really don't know!