Consumers have short and long term memory loss. Remember the real estate markets in 1977, 1987, 1992? Same scenario, but back then, higher default rates...did it impact the economy...yea...but this current default phase is way lower than in those years...with an expanded real estate market to boot! This whole bail-out frenzy is political in nature...has nothing to do with solvency.
I have to laugh. Many of us oldsters saw this coming. A year ago I decided it was time to make a move I had deferred for years. I offered half the asking price and it was quickly accepted in fifteen minutes. When I shared that on a thread here, younger know it alls called me a liar. History repeats itself.