And now from the Optimists at CNN...

Let's look at each of CNN's examples and see what factors created the bust:

Austin....Tax Reform Act of 1986 and Tax Hike of 1989.

Denver.... Tax Reform Act of 1986

Detriot.... American Automobile Industry slide of the early 1980's.

Honolulu...I don't know about this, but I which I had bought real estate in Hawaii in 1994. The average price today is probably twice this much.

Los Angeles...Earthquakes, riot, urban issues.

New Orleans... Tax Reform Act of 1986, urban issues.

New York... 1990 Recession

Peoria... ??????

Phoenix.... I wish I had bought every house available in Phoenix in 1987, I would be able to pay someone else to blog for me.

San Francisco... by 1990 the prices in San Francisco had gone up so high, that they had to come down. However, had I bought at 1990 prices, I'd have made a mint in the last four years.

Peoria is the only market without explanation. I just don't know enough about it. But it seems as if the media optimists want to scare the country into a real estate bust.