Here is the most important fact underlying the economic meltdown: Home prices continue to decline. The S&P/Case Shiller composite index showed prices dropped nearly 1% from June to July.
Until the housing market finds a floor, we will not be able to turn things around. And there are still more declines to come before housing prices return to their historical trend. (Click on the link and follow the red line back along the trend line. The median home price should be in $100,000 to $150,000 range. The National Association for Realtors shows the national median existing-home price for all housing types was $203,100 in August, down 9.5 percent from a year ago when the median was $224,400.)
Still plenty to go.