Here is a column from Marketwatch on Housing, asking if it is still the economy's Achilles' heel.
Here's my quick answer: No.
Why do I say that? I think it's priced in. Folks who were underwater and unable to make payments have already moved on to the next thing. Either they have roomies, moved out, refinanced, short-saled, or gone to foreclosure.
Banks have moved on as well. They've received financial help from the government, and now have properties that they will slowly unload over time.
The real Achille's heel of the US economy is energy.
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Used iPad app Art Studio to take the Marketwatch screen-cap and add a layer with the iPhone girl.