A house worth $1m in 2006, but bought for $3m would therefore be 200% overvalued in 2006. A drop to $300,000 a few years from now in today's dollars (factoring

A house worth $1m in 2006, but bought for $3m would therefore be 200% overvalued in 2006. A drop to $300,000 a few years from now in today's dollars (factoring inflation, smarter consumers, banks loaning money only at very high interest rates to reduce their risk of losing money to inflation and being in trouble again, tougher lending standards) would then be a drop of 90% from $3m, or 70% from the "real" price. I've also read a similar post by a blogger who bought a house seven years ago, before the housing bubble, and now his house is worth much less than what he paid for it even seven years ago. His argument is, shouldn't he get bailed out, too? EDIT: here's the post, titled similarly to Peter's article: http://www.wisebread.com/should-we-all-just-stop-paying-the-mortgage http://www.wisebread.com/should-we-all-just-stop-paying-the-...