What would happen if mean home prices returned to where they were just 18 months ago? That would be a very small retracement of the last 8 years move. The average family that bought a home in 2004 with a low downpayment would be insolvent. The average middle class household is wiped out on a 30k hit on their house. Could the system handle this. Are we setting up for the worst depression ever? Or would we get through it ok?