Major league players folding their cards and leaving the game. Some numbers have indicated as much as$1.12 trillion worth of hybrid and traditional adjustable-rate mortgages were originated in 2005 and 2006, while $779.13 billion of interest-only ARMs were issued in that period, according to a survey from the Mortgage Bankers Association.  During a recent symposium I conducted, a Vice President from Countrywide and a Loan Officer from Bank of America indicated that projections for this market extend to the end of 2009. Citimortgage's Vice president, said his firm was prepared for a run through 2010. In most cases borrowers with these products are expected to see higher interest rates and therefore greater challenges. Unfortunately, these challenges are expected to result in more foreclosures.

From my own assessment, it will be third quarter of 2010, before we see a leveling off in the market. This of course is only if the new President's economic stimulus plan is up to the task. Then and only then will major investors put up infusions of cash to create new businesses, hire staff and market products and services. In the meantime, the master plan is long overdue. Given the volume of nonperforming loans, we need a have a plan action going forward, one that engages both the government and the private sector. We shouldn't wait until the middle of 2009, hoping that it all works out. This is more than a simple market correction. There are other major factors at play that impact the economy and the real estate market cannot and will not be corrected in a vacuum.