Umm, yeah

Just How Terrible Is Housing as an Asset Class? Roubini Weighs In

Isn't the bigger problem that people were overusing their ability to get credit/loans? They bought too big of a house (assuming the equity would grow at the same astronomical rate), filled the garage with 2 or more SUV's (again either leased or bought on credit), filled the house with furniture (again bought on credit), a big screen TV (again on credit), and just now realized that they're spending more each month than they earn? Especially now that food, gas, energy, etc., have all significantly risen in price.