...does not work. Despite numerous efforts by the Obama administration to keep the housing market at its bubble level, they have failed. The money has run out. The spigot is dry. 

The S&P/Case Shiller home price indices for January have been on the fall since December. Prices haven't dropped sharply, yet. The only reason for this is the artifical propping up of the housing market that appears to have finally met its match. Scarily enough, however, is how long it will take for prices to correct to the market level: 

Also, looking at the 1990s-era comparison charts below its obvious that even after the main downward thrust has been reached, the housing markets have a long tough slog ahead with the ultimate bottom likely many years out…. Or if we are currently experiencing the Japanese model… decades out.

Residential real estate aren't the only worries. Commerical real estate enjoyed the same sugar high that the residential real estate market experienced. Now it must suffer through the same hangover. No matter how much greasy food the Obama administration gives commercial real estate, if at all, it will surely be no cure. It looks like the day of reckoning is fast upon us. Commercial real estate bankruptcies rose 52% in 2009. There are no signs that things will get better either.

As always, who have been calling this up and coming bust? The Austrians of course.