One reason why we're doomed

Here's a glaring example why the American economy is going, going, soon to be gone: house prices in Southern California have fallen by more than 40%! And worse, they won't ever be going back up. What are families going to do? "We bought a house for $500,000 and now we're stuck in a neighborhood full of empty, foreclosed shanties and our house is worth only $300,000 but nobody wants to buy it and we're still stuck with a $500,000 mortgage!" Does any rational person believe that homeowners are going to keep making payments on mortgages for homes worth only 60% or 50% or 40% of those mortgages? For the next 30 years? The sub-prime crisis was just the beginning; now it is the turn of previously solid middle-class homeowners to walk away. More bank failures are just around the corner.

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