The problem is lots of folks bought houses that shouldn't have. Folks with shaky credit are now getting to live the true American dream. I heard one ad for a "Vacation Mortgage". No payments for one year. Take that money and use it for a vacation. You've got to be $hit'n me that people actually do those things. What's next, "Your job is your credit mortgage."

Lots of houses on the market and flippers wondering what the hell they got themselves into. The subprime market woes are being to affect folks with good credit. They are set to close deals, then their mortgage company goes tits-up or can't secure funding for the loans.
You're right about the 20% appreciation rates. Unsustainable.
Goldman just had to slap 3 billion into one of their hedge funds to stabilize it. They said it wasn't a rescue, but I call BS on that. Bear Stearns already shut a few of there funds down.
Just my opinion, I think we are looking at least another year to 18 months for this mess to clear up. Then on to the next thing that pops up to give Wall Street problems.
My 401K isn't looking great at this moment.
Brian