[Larry Lucido]

I beg to differ. The price will adjust and homes will sell at that price. It’s basic economics.

What isn’t basic economics is artificial stimulation or government regulation. Remove those, and prices will find their correct level.

[hinckley buzzard]

That's right. The housing bubble has yet to stabilize, and there is no painless way for that to happen. If these guidelines are enforced, will there be further pain? Yes. Of course. Housing prices have to drop further, and many thousands of people who don't belong in the housing market need to leave the market. There will be a long time processing the wretched excesses of the last ten-twenty years.

But those consequences are certain anyway, regardless. Anyone who thought we could finesse our way out of this fiasco without paying the price as a country just hasn't been paying attention.