Real estate. Housing Mortgage Mess. Right? Its been repeated constantly. Stock market took it on the chin. Now the Feds have cut rates 3 times still the market is not satisfied. They have brought in lots of liquidity but still the market is not happy. Now they are laying down rules for lenders to loan money, making it harder for borrowers to borrow. Bernanke is a stupid out of touch ivory tower intellectual clown in the ringling and barnum baily circus. IF you and me started buying real estate there won't be any blame. People in this country have frozen up postponing real estate buying and that is the real problem and answer to all the woes including mortgage mess and stock market. As long as the consumer freezes up and isn't encouraged to buy real estate, the woes will not go away. Real estate valuations will keep going down cause there are no new sales, inventories will keep piling up, lenders will keep tightening credit, CDOs can't be sold , and rest of the world won't buy US paper. Loans made 2 years ago were not bad, its the lack of valuations that made them look bad, lack of valuation due to lack of purchases! Lack of purchases due to lack of confidence and " wait-and-see" attitudes bringing down the temple! IF the Feds can do anything along with lenders, they should stimulate real estate buying. Encourage people to buy instead of renting which they are doing. The public can hold back one or two years longer, but at some point this need for housing will unwind and burst open and the market will come back on its own like it has done in the last 60 years. At some point this frozen up, lonely, unsure, scared US consumer will get over his fears and that will be the day. With new purchases everything in the machinery will go back to working order. The market will be stimulated , sales activity will pick up and builders will start new constructions. Talking about stock market, they will find another scarecrow to frighten the small investor into submissions on the days they like to trade short.