The Knockout Blow: “If you think this is bad, imagine what it’s going to be like in the middle of the crisis.”

I like the "we've hit bottom" crowd, even though that field is getting smaller. Folks, now the the REIC is in full meltdown mode, and millions will eventually lose their jobs (including the illegals), all that does is speed up the crash even faster. The meltdown is just starting. And people think it's bad already? Man, just wait.

Throw in the inability of millions to get new loans, or refi their old toxic loans, and the writing is on the wall.

The Great Unwinding is here. What happens to a country who has lost it's manufacturing base, and the only thing left that they still build - houses - stops too? We'll now find out...

The housing market and the related construction industry is one of the biggest, if not the biggest driver of the economy.

The ability of “anybody with a pulse” (and probably their dog too) to get a loan is what drove the real-estate market.

The ability of people to refinance and cash-out home equity also fueled consumer spending and the economy.

But now a huge segment of prospective home buyers can no longer qualify for a mortgage to purchase a home, and home prices are stagnating and falling in many areas.

“It’s going to be a disaster for many people who don’t have a clue about what happens when a real-estate bubble pops,” said Rogers.Think of this as “the leading edge of the storm,” says Lou Ranieri, who is considered by some to be the father of the mortgage bond market.

“If you think this is bad, imagine what it’s going to be like in the middle of the crisis.”