The Real Real Estate Risk

Everyone is acutely aware that there is a recession going on in the real estate market.  You don't need to be a stock guru to recognize that 50 - 80% price drops in building, mortgage, and banking stocks signals that trouble abounds.  Many market observers are saying that the credit crisis is subsiding because the LIBOR spread has narrowed somewhat to the Fed Funds Rate, credit is available and ‘substantive interest rates cuts' are assured.