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I WOULD LIKE TO ASK IF YOU COULD PERHAPS BROADEN YOUR COMMENTS ABOUT THE ECONOMY AND DISCUSS WHAT YOU FEEL A BAILOUT WOULD DO TO THE HOUSING MARKET AT THIS STAGE OF THE GAME...

The state of the economy and the circumstances surrounding the need for the bailout has been building for a long time. I am not the expert on the solution, but I think I can speak in terms of what can/will happen as a result of a plan (or a lack of one). First of all, in every transaction, there is price and terms. Mortgage rates and availability is part of what I mean as "terms". If money is "tight", rates will have to rise over the long term and the amount of mortgage homeowners can afford will be lower. The lower the amount they can afford for a mortgage equals lower prices they will pay. Also, if people cannot refinance due to tight credit, more families will lose their home which will add more distressed property to the market. This extra supply, combined with diminished buyer purchasing power could put more downward pressure on pricing. How they "fix" the market is debateable, but the need to do someone this not (debateable). While us in the real estate industry see the problem through our eyes (less sales, tougher transactions etc), it important to realize that a tough real estate market affects EVERYONE. It affects the contractor, suppliers, manufacturing, insurance companies, banks..EVERYONE! Lets hope that for once, Washington can put politics aside and pass some sensible, effective legislation.