And it is going to get worse for many over the next couple years.

With all of the talk of "tight credit" is the realization that houses are taking an across-the-board 20-25% reduction in value. I know the house I'm trying to sell in DC I'm going to take $100+K loss at minimum, since I found myself having to buy in mid-2004 (when prices were at the highest) and now sell when things are tough. We've had to be realistic in pricing the place at a rate which makes it "mortgageable" (below what we paid for it) and still it's been slow. As is always the case, there will be those who make money at the same time others lose money, but that's business.

Any boost in consumer or homeowner credit that is not tied into keeping the money circulating within the community (as opposed to shipped outside the country for Made-in-Elsewhere goods) will only feed the problem. It is impossible to exit a recession while being upside-down continually in balance-of-payments.