On the Net as of June 13/06 one could read the following: The Federal Reserve wants to step in and impose measures such as: proof of income from borrowers. No penalties for early mortgage payments. And a guarantee that property taxes and insurance bills are covered… Lawmakers are pushing the Fed to act as late payments and new foreclosures on adjustable-rate home mortgages made to people with spotty credit climbed to all-time highs in the first three months of the year.

 “This is a moment of great concern in our economy as to whether subprime is going to pull us all down,” said Susan Wachter, a professor of real estate and finance at the University of Pennsylvania’s Wharton School of Business.

The housing market hasn’t bottomed yet. Indeed: how far do housing prices have to fall before a slump becomes a bust? , a Herald tribune columnist who realizes that even economists have yet to agree on the definition(s). If  recession is two bad quarters in a row, then the persisting slump in housing may surely become a bust in July. Right?