Not even close

Implications: We began the "slippery slide" a few months ago. Bigger issues are at play here--it's not just a sub-prime crisis.    

Analysis: In my opinion, we have much bigger issues at stake in our economy, than just a sub-prime crisis, or a buyer's market.
Years ago, a rule of thumb for buyers was, pay 1 1/2 to 2 times your annual income for a home purchase. Really!! And it worked.  We all had enough money for vacations, SAVINGS, medical costs, a new car every 3-4 years, etc.  Today, can you imagine a person paying $150K for a home if they are earning $100K/yr.  I doubt it.
The real issue is taxation, I believe.  We are giving way too much or our income to the government.  In the 70's, when the above rule worked, we were only taxed about 10-15 % of our income, for both Federal and State taxes combined.  Look at where we are now--50%.  This leads to credit borrowing.
A bigger issue is that our government's finances are far worse than those unfortunate persons, who wnet over their heads in borrowing.  What is going to fix their dilemma??
We will see further declines in housing prices in 2008, as demand has vanished.  With 2M vacant homes/condo's on the market, and that number is increasing(!), we are far from heading in the right direction.