Homebuilders are a good example of how too much/too easy credit can distort a market. And what do THEY think the solution is? More of the same thing that got us where we are today. Throughout this whole "crisis" the one thing that comes through loud and clear is the "0 tolerance" for any negative market action. Banks loaned to people that couldn't afford it and then tried to hedge the risk with a counterparty that couldn't deliver. And they are all just shocked at the outcome. The people that took out loans they couldn't afford need to lose their houses. The builders that overbuilt need to go out of busniness. The banks that made the loans to the peolpe and builders need to go under. Its how markets work.