Just what does everybody expect? If you are waiting for an economic panecea, expect a long wait. Although Paulson and a few other have said that the worst is over there are just as many that disagree. There are special interest groups that track everything from real estate to productivity. The government tracks economic indicators and the Federal Reserve considers all in making rate decisions.
A great deal of this statistical data is mighty confusing as it runs in the same manner as opinion - good to bad. So what is really going on? Some say blame the media for all the hype and without all of the attention there would be no problem. To me, the last statement is pure ignorance.
What we are encountering is a general series of unfortunate events set in motion by foolish lending practices which created a massive price bubble in the housing industry. Starting in 2003 prices stated to escalate and the banks found inventive ways to provide financing. The builders followed suit and upscale luxury was in along with 0 down, negative amortization and no consideration to the buyers ability to repay. No doubt that cheap interest rates paved the way. In 2007 the fancy finance started to come full circle and the mortgage holders got a reality check in the form of much higher payments. Default started and is still in vogue. Seeing that financial problems were occuring, the Federal Reserve jumped in and lowered interest rates.
A good move that had repercussions as oil is traded in dollars and the cuts created currency disparities. The price of oil went up - way up and is still climbing. Things are not getting better. The price of fuel is being reflected in the food supply and it's relative cost. Energy is sure to be next, along with heating costs. The consumers that were not part of the housing boom are now participants in it's fall out. Those that were responsible, but on a tight budget are now looking at default, job loss and wondering why? The builders are still building luxury units that will be ghost town projects as there will be no takers. They have no choice but to build as the construction contracts were signed. A great deal of this will become the property of the municipal tax collector and be nothing more than further burden on failing city budgets.
Anyone that expect decent results from Lowe's or the Depot in the near future is going to have a wait.

But gas prices hitting record levels again, I just saw the news through this page:
http://www.topnewsblog.info/tblog_10088.htm
Seeing it, I was kinda surprised. Now the most important is how we can save on gas.