Free Falling

Today's report from the S&P Case Shiller index makes things look very bleak. Record plunges if 14.1 first quarter for year-over-yaer - at a pace five times faster than the last housing recession. This article called Home Prices Fell at Record Pace in First Quarter from Reuters discusses how bad things really are -

Falling home prices have become the scourge of the housing market that is seeing its worst downturn since the 1930s. Home values since last year have been dropping below balances owed on many mortgages, leaving borrowers with no equity and more likely to succumb to foreclosure.

The crisis in foreclosures, which pressure prices even lower, has spurred numerous plans by regulators and lawmakers that aim to keep borrowers in their homes by forgiving a portion of their loan's principle.

The fall of home prices is intertwined with the decline in auto sales and other discretionary spending. The free fall is picking up speed - just how close we are to the bottom is the important thing. With the constant comparison to the Great Depression, hopefully the bottom is closer rather than farther away.