Every few days you will hear that the officials predicting that the housing crisis has bottom out.  I really wonder how does a $1 trillion dollar issue bottom out so easily.

The Office of Federal Housing Enterprise Oversight said Thursday that home prices fell 3.1 percent in the first quarter compared with last year.

It was only the second quarter of price declines since the index started in 1991. The price index first declined on a year-over-year basis in the final quarter of 2007, when it dropped 0.45 percent.

These simply means that the housing crisis is still here to haunt us over a long long time.

It is good to be optimistic, but it is better than in the face of optimism we put our foot to the ground and be realistic and not just optimistic.