Couple of things that come to mind in reading this. (1) Remember that little immigration issue? I'm wondering what the "real" job loss is? I wonder how many undocumented workers were the grist for the construction mill that will find themselves in economic hardship? (2) There is still no material fall out so far on credit industry (except for H&R Block), and it is twofold. First, you have homebuilders carrying far more debt than they can support (we tend to focus on the public companies), but in regions, you have lots of private contractors with large borrowings. Second, you have the consumer side. A 9+% drop wreaks havoc on debt to equity ratios. Bill, I think that you mentioned, correctly, about regional banks being vulnerable. But there's a paucity of general media coverage, or either I'm hibernating. The talking head keep pointing to wage growth as a mitigating factor in debt service, but aren't incentives/options included in the widely touted numbers that Americans are making more? With record corporate profits, SOME Americans are enjoying better wages, as the payouts to top folks have been huge. I don't think that we're not going to see that moving forward. I don't think that the John Q Public has seen that benefit so much. I imagine we'll see s-t credit expand in the near term. I'm just curious as to when the funding credit risk reserves will commence. I'm still waiting on the banks to roll over a bit. My put positions in WFC and BAC were some of my less well thought out investments.

Bill,

It was early 1990's and I was visiting parents wintering in West Palm Beach at a time when real estate had gone bad. At Palm Beach Shores on Singer Island near the Blue Heron Bridge I checked out a fine 2,000 s.f. bungalow with double garage on a palm-lined street, Florida room and back-yard boat slip accessing the Intercoastal Waterway. Price: $175,000. I told myself this will happen again when I'm ready to do some pre-retirement bottom feeding. Come to me baby!