Every time you open the paper or turn on the computer it seems like there is only bad news on the economy. The stock market is down over 35% over the past year, and home prices have also declined. In a recent survey it was reported that over 60% of Americans think a depression is likely. While the economy is facing some very tough times, and the financial and real estate sectors are not functioning properly, the economy as a whole is not like to fall into a depression. A recession, yes. It is my opinion that most people have panicked and the selling on Wall Street is over heated. The FED has taken drastic measures to reduce the fallout of the credit crunch and has acted quickly enough to keep the market from further meltdown. It is going to take some time for the markets to work themselves back into a normal condition. I think it is vitally important for people in the Real Estate and Mortgage profession to continue their hard work and help clients see the long term on their finances and how owning a home can and will have a very positive impact on their overall financial well being. Home prices are as affordable as they have been in over 5 years, so now is time to buy and hold, for the long term. Years into the future I think we will look back on this much as we have many other times of financial hardship, and wish we had the forethought to BUY LOW, so later we can SELL HIGH! Please let me know if your thoughts on the stock market as well as the housing market.