I swear I’m not a pessimist but this economy really has me worried. The fundamentals really do point to disaster! My next fear is that inflation is going to be seized on as the solution to our current crisis.

Housing prices haven’t hit bottom yet

“I don’t think we get strengthening in the housing market until late 2011 or
2012,” said Mark Vitner, senior economist for Wachovia, the nation’s fourth
largest bank and one that this month hired the number-two man from the Treasury
Department as its new chief executive officer to shore up its own growing
exposure to mortgage debt.

Before bottoming out, prices nationwide should fall 22 percent to 29 percent on
average from their peak, according to a report that Wachovia released last
Monday.