Since the official recognition of a recession we've been in supposedley since December 2007 ( like no one already knew that except for all the politicians) what has happened?  The stock market tanked immediately again on Monday ( how much did YOU lose trying to be optimistic from the Pre-Thanksgiving rally?), consumer confidence once again disappeared, and what few BUYERS for homes existed went hiding again.  This a crisis of confidence.  Something has to give the consuming public some hope for things to turn around.  I have said all along that mortgage lenders must step forward and boldly make special financing available NOW for qualified borrowers, and make it available for at least the next year.  I have been getting daily emails from various mortgage lenders who say the rates are in the mid fives right now, but "we don't know how long how long these rates will last".  No one seems to be getting those rates however.  Restrictions that even Warren Buffett could'nt qualify for as well as absurd down payment requirements, and low appraisal figures make these mortgages virtually non-attainable. 
FEAR HAS TAKEN OVER LENDERS!  The consuming public is not stupid.  They know what's going on, and they are more educated than ever. I have a very opinionated view that lenders largely got us in this mess and it is going to take a bold initiative on their part to get us out of this mess. Yes---greed and stupidity on the part of a lot of buyers who could not truly afford what they bought in the last six  years fed the frenzy in Real Estate.  The way it seemed was everyone deserved to live in luxury.  I guess that dream ( a bubble perhaps) has been burst.  Oh---but we haven't been in a bubble, right?  I know one thing---until the Real Estate market turns itself around, meaning balance in which reasonable buyers buy from reasonable sellers, this economy is going to stay in the tank.  I am a firm believer that the best way to get buyers to get back in the market is to give them a REAL INCENTIVE!  See my earlier blog on financing that will work!  LENDERS ARE YOU LISTENING?