I do not see the problem with the valuations being a credit problem, just that a realization of basic economics principals has taken place in recent economic times. Current value determination is somewhat based on what investors think it will be worth in the future. Well the future is pretty foggy right now and in order to make a safe investment you would have to lower your estimated value to make up for the uncertainty. We are seeing this in the current housing market as well as current agency valuations. So with this said, elect new politicians who will create more certainty or at least make the effort to create more economic certainty and market values will return to a more realistic (?) numbers.
I do not see the problem with the valuations being a credit problem, just that a realization of basic economics principals has taken place in recent economic times. Current value determination is somewhat based on what investors think it will be worth in the future. Well the future is pretty foggy right now and in order to make a safe investment you would have to lower your estimated value to make up for the uncertainty. We are seeing this in the current housing market as well as current agency valuations. So with this said, elect new politicians who will create more certainty or at least make the effort to create more economic certainty and market values will return to a more realistic (?) numbers.