The Case Shiller figures this morning were downright awful. At a time when many think the housing problems may be improving (mostly driven by government intervention) it actually appears that the housing decline is picking up speed. House prices fell 18% year over year vs the September figure of 17.4%. Anyone expecting a V-shaped recovery in housing is kidding themselves. More likely, prices overshoot to the downside. I expect the contraction to decline in speed in the second half of next year and for prices to meander for many years. This economic recovery is likely to be VERY slow.