Who needs an economic policy?

Prices of U.S. single-family homes plunged a record 14.4 percent in March from a year earlier, while consumer confidence slumped to its lowest in 16 years in May as gasoline prices surged.

I've been poking my nose into houses in areas around San Diego I like for about a year and a half now, and I've noticed (obviously, anecdotally) that prices in the norther half of SD and near northern suburbs have dropped about 15-20%. Of course, some neighborhoods have not been affected that much (some, like La Jolla, seem to have gone up!).

"In terms of prognosis, there remains no reason for the situation to stabilize and every reason for it to continue to deteriorate yet further with price declines accelerating," said BNP Paribas economist Richard Iley, referring to the record declines in the S&P report.

Most around hear seem to expect at least another 20% drop in the next year or two, and I've been seeing stories of people offering 85-90% of listing prince and getting it.