I agree that sometimes people behave rationally and sometimes they don't, but I think you've got it backwards... Now, people are finally behaving rationally... What we've seen for the past 6 years was the irrational part... And Toll is just trying to blame someone other than himself...

I agree, home prices rose irrationally, with so much speculation in areas which had no other reason to skyrocket than the comparitevely low prices for land...such as Las Vegas & Arizona. Other areas, like coastal Florida, Northeast and California it was a land grab, or rather ocean grab as people flocked to buy the dream, retirement or vacation home by the ocean at any price. But the depth of this downturn is as much irrational and the media played a part on the upswing, now thery have definitely fueled the downturn in a greater way. The media has created fear and panic. It claims it just reports the news, but make no mistake, they are CREATING the news here, with suggestive headloines and stories such as "Is the RE Bubble About to Burst" or "Is Your Home Next To Slide" and such. That is not reporting fact, it is sensationalistic creative writing that influences the public. These stories caused owners to think they better hurry up and sell before the bottom falls out and potential buyers to think, "oh, prices are going todrop, I'd better wait." So the media has now created the self-fulfilling prophecy. And even when RE markets start leveling out you won't find it in the media, because that won't sell.

I didn't hear Toll complaining about how the media whipped up a frenzy when property and home values were climbing by inappropriate percentages beyond the reach of middle working class people. Now that the market is sagging a bit he is complaining that he won't make his big pocket multi-million dollar personal income. My heart bleeds for him. People like him are what caused the market crash in the 20's (greedy beyond all expectations). So, how will he compensate to keep up his personal life style? He will just charge the poor working class more to do the same job that should cost 1/3 as much.

Gee, I wish that position would work. Think about it. We have a massive drought in Georgia. If all the papers in the State report that it is raining, rain will fall.
Someone is in dream land.
But what the heck - before this housing fiasco is over we will have cartoons like the famous "tammany hall/boss tweed" with everyone doing finger pointing.

The National Association of Home Builders did a study, apparently to try and prove the media caused the housing crash, but even their own bought and paid for study failed to prove the media caused it. This was reported in Realty Times for one. I believe the National Association of Realtors has attempted the same tactic. It ain't gonna work; the industry created this mess.

When we were in the boom years the industry said it was saving the economy. Consumer advocates warned it was unsustainable, that people were going to lose lots of money, and that it could impact the economy. The industry said housing would never come down. The govt said they coudn't do anything.

In fact the govt helped push this 'dream of homeownership' crap on people who could not afford it. Appraisal fraud and mortgage fraud were growing, but only when banks and investors got burnt, did this get the real press it deserved. When it was "only" consumers getting burnt it was a non-issue.

So, the industry, with the help of Uncle Sam, created an artificial housing bubble, and it predictably crashed. Now, the industry wants to blame the press, and get a govt bailout, and package that bailout as being "for the homeowners." Get me a bucket, I need to upchuck my lunch!

Seeung, hearing, and reading, thru all the stuff about sub prime etc etc, I wonder, if financial institutions have their own agenda, show loss in billions, get tax credit, then make billions back and dont pay the Govt?,