Help!! The sky is falling!!!!!!!

Ok, I know things are not good in the mortgage industry and the markets have slowed.  BUT does anyone else feel that the media is making it all worse than it really is and adding fuel to the fire.  If the newspapers and news programs are all saying how bad things are(because bad news sells better than good news)don't people tend to take that view?  Sure, things are not wonderful in the real estate world right now but there is a cycle to everything and we are in the down stroke right now, nowhere to go but up.  And people are still buying and selling homes, mortgage companies are still writing loans.  Things have changed, yes, but doesn't everything?  Maybe now the inflated prices in some areas will come back to reality and the buyers that really shouldn't be buying right now and the lenders that shouldn't really be lending them money will have to put themselves in a better position over time.  I am interested in hearing what everyone else has to say on this topic.