House values will recede a further 24% - 42% before they find a bottom.

With the Feds artificially propping up the real estate market and banks holding foreclosed properties off the market, or refusing to foreclose so as to not have to recognize a failed loan, the housing recovery will endure much more pain before a long, slow recovery can take place.

Unfortunately, the tragic part of this, as with most inflated prices that fall back to a long term trend line, the price tends to over shoot and bottom below the long term trend line, taking that much longer to return to normal. This is but one nail in the markets coffin. It will crash.

A very good read: Why the Stock Market Should Crash

- Donald Ingram

Related Posts:

• As China’s bubble market burst, U.S may begin it’s pullback like 1930.
• Why investors are paying more attention to Washington than earnings.
• Prepare for the worst, and hope for the best for the coming months
• Some things that I cant seem to forget when analysing this downward trend:
• Watch this video clip first, and pay careful attention to the implied threat: do this or the market will blow up.

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