and it sure looks like a national housing bubble since housing was going up above fundamentals just about everywhere.

I guarentee just about all of CA will take it hard -- too many IO loans and option arms for prices to stay stable, and housing prices are way out of wack with incomes It might be a quick decline or it might be a long, slow one, but it's happened before and it will happen again. And, since many CA home owners have "invested" in real estate in other states, those areas will be affected, too.

--Tonhy