You are a senior economist and don't understand the long term trend from skilled labor to automation? Or the capital required in today's business landscape small or large? Try starting a consumer driven business that requires access to store shelves? or B to B calling on any major corporation that requires extensive ISO documentation along with bidding against better capitalized competitors. Internet driven E-bay style companies are mostly what is happening in small business otherwise the capital requirements far exceeds what most Americans can risk. I am retired from a career in manufacturing that started in the early 70's and have experienced first hand the country's changing business and labor market.

My neck of the woods, Sonoma, Calif property provides an indication of what direction other markets might experience when if ever foreclosure/distressed homes become a small percentage of the market. My upscale 55+ area has a good number of homes for sale and few are selling, prices continue to decline slowly but on a steady pace. Economist and others expect prices to hold or go up once the foreclosure process has run its course but the reality is that home prices are way out of line with income including price rent ratios. When using a price rent ratio use 100 times monthly rent as a baseline to get a good idea what local home prices should be. In my area most of these homes rent for about $1600 a month and owners try and sell between 350K and 500K, so based on the rent market these homes need to sell in the 160K range which is a long way from there bubble high of 650K or even current market prices which reflects a slow market. Maybe when and if these properties get down to reasonable price rent ratios they will sell.