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http://finance.yahoo.com/news/home-sales-hit-five-high-140356921.html

So much for your assumption that housing will not lead us out.
The mortgage debacle was the largest debt crisis ever. The fed threw trillions at it to stabilize the situation. Over 4 years later you can't argue it hasn't helped. there was no going to be a quick fix panacea. Look at the economy today and tell me all segments are not improving. I never stated the debt problem will be resolved. I just stated that it should not happen in this environment. My best guess is another heated economic cycle where the Fed can't control interest rates and creditors get hit badly.

The housing market is real. I live in a neighborhood that has seen prices exceed the past highs with no sign of slacking off. I believe this one fact has emboldened Bernanke to throw out the tapering of bond purchases. A housing recovery will quickly lead to an accelerated economy. In my mind the best scenario was behind us, where we muddled along for 4 years. Once the market attempts to spend and borrow like the good old days, it will be the last rally for a very long time.

BTW, housing prices rising does not make a bubble. The huge margin requirement was the complaint as to why it is gaining so slowly. You can't argue that banks were too cautious and we are entering a bubble. Which is it?