If you go to Flint, MIchigan you will see they are bull dozing subdivisions and going to leave the area vacant because it cost the city too much to service them. Yet I do agree that they have been able to use many devises to create a positive yet not truthful tone to what is happening. The folks that are spinning this are the rich and from their standpoint things are fine. If you have millions and lose a few you still are fine from an economical viewpoint.
Let's see... They won't build in my area as the appraisals are coming in too low... Homeowners can't refinance because their incomes have changed (for the worse)... Most people are afraid to buy anything.