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I visit Sacramento, California several times a year, mostly the outskirts of town, former farmlands now converted into acre upon acre of tract houses presumably financed by subprime mortgages. I quipped in May that I had sighted the infamous "housing bubble" and captured it on film:

Now I'm back, and I've sighted it again, and again captured it on film:

Hmmmm... seems like there's something a little different this time. Something about low 400's and high 300's (and they've done away with the silly quotation marks). Sounds like prices are finding a new and lower equilibrium. But fear not. I've never seen the strip-malls as crowded as they were today. Parking spots at a premium. Longest lines I've ever seen at Old Navy, Borders and Starbucks. This isn't subprime hell. How come? Same answer as usual. The bears were wrong about the impact of mispriced housing and mispriced loans -- and the entrepreneurial class is rising up to ease the transition to a new reality (a phenomenon I've also sighted and caught on film).

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